DUBLIN--(BUSINESS WIRE)--The "Global Hydrogen Regulatory Frameworks and Growth Opportunities" report has been added to ResearchAndMarkets.com's offering.
The primary aim of this research study is to analyze the policies and roadmaps implemented by various countries toward hydrogen adoption to achieve a sustainable energy future. The study also identifies growth opportunities for the hydrogen market and the countries and companies active in this space.
Our pathway toward decarbonization and achieving the 1.5 Celsius target necessitates supportive regulatory frameworks mandating energy-efficiency measures across the commercial, industrial, and residential segments. It also requires significant economic investments driving renewables and the switch to nuclear low-carbon and large-scale CCUS technologies.
Interest in hydrogen as a low- or zero-carbon energy carrier has grown in recent years. Many governments acknowledge that a hydrogen-based economy could be the best alternative to the present fossil fuels-based economy and an answer to concerns over carbon emissions, energy security, and climate change.
Hydrogen helps curb carbon emissions by:
Though the promise of hydrogen as an essential tool in catalyzing the transition toward a sustainable energy economy is huge, its current application is mostly limited to the industrial sector. Many projects across power generation, transport, and other segments are still in their pilot stages and require technological and cost breakthroughs for increased adoption. There is still a long way to go, and it will likely take another 10 to 20 years before the hydrogen economy becomes mainstream across the global power sector and other segments.
For the hydrogen economy to become a reality, decisive government actions in four areas are necessary:
In the past five years, many countries have developed a hydrogen strategy prioritizing targets and investments running into billions over the next decade. While some nations are focused on production and export, others are making domestic and foreign investments to ensure future supply. There are also specific targets relating to production, in terms of cost or quantity, or particular areas targeted for decarbonizing, such as industries, heating, power, or mobility.
Key Topics Covered:
Growth Opportunity Universe
The Strategic Imperative
Growth Environment and Scope
Growth Opportunity Analysis
Hydrogen Strategy Country Profiles
For more information about this report visit https://www.researchandmarkets.com/r/air43r
ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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MEMPHIS, Tenn.--(BUSINESS WIRE)--FedEx Corporation (NYSE: FDX) announced today that retired Navy Vice Admiral Nancy A. Norton and Stephen E. Gorman have been nominated for election to the FedEx Board of Directors at the FedEx Corporation Annual Meeting of Stockholders on September 19, 2022.
Vice Admiral Norton led the Department of Defense’s cyber activities, where she was responsible for organizing, training, and equipping members of the military and civilian staff and command and control of joint forces to secure, operate, and defend the Department of Defense Information Network. She served as Director of the Defense Information Systems Agency and developed extensive cybersecurity programs for naval fleets and their activities throughout Europe and the Asia Pacific. Admiral Norton was commissioned in 1987 through the Navy Officer Candidate School and served multiple tours for the Office of the Chief of Naval Operations, including as a director overseeing information warfare.
Mr. Gorman retired as the Chief Executive Officer of Air Methods Corporation, a leading domestic provider in the air medical market, in 2020. Prior to his role as CEO at Air Methods, he served as President and Chief Executive Officer of Borden Dairy Company and Executive Vice President and Chief Operating Officer of Delta Air Lines, Inc. Throughout his career, Mr. Gorman has held other executive leadership positions including for Greyhound Lines, Inc., Krispy Kreme Doughnuts, Inc., and Northwest Airlines Corp. Mr. Gorman was nominated for election to the FedEx Board of Directors pursuant to the cooperation agreement between FedEx and the D. E. Shaw group announced on June 14, 2022.
“Nancy and Steve will be tremendous assets to the FedEx Board of Directors,” said Frederick W. Smith, FedEx Corp. Executive Chairman and Chairman of the Board. “They have proven leadership skills and extensive expertise that will complement the existing skill set of our Board of Directors and provide great value to FedEx.”
If elected, Admiral Norton will serve on the Cyber and Technology Oversight Committee and the Compensation and Human Resources Committee, and Mr. Gorman will serve on the Governance, Safety, and Public Policy Committee and the Cyber and Technology Oversight Committee.
In addition, the following 13 current members of the FedEx Board are standing for reelection at the annual meeting: Frederick W. Smith, Rajesh Subramaniam, Marvin R. Ellison, Susan Patricia Griffith, Kimberly A. Jabal, Amy B. Lane, R. Brad Martin, Frederick P. Perpall, Joshua Cooper Ramo, Susan C. Schwab, David P. Steiner, V. James Vena, and Paul S. Walsh. Dr. Shirley A. Jackson is retiring as a director immediately before the annual meeting and will not stand for reelection pursuant to the mandatory retirement provision in FedEx’s Corporate Governance Guidelines.
Following the 2022 Annual Meeting of Stockholders, the FedEx Board of Directors will consist of 15 directors, 13 of whom are independent, if all nominees standing for election are elected.
About FedEx Corp.
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenue of $94 billion, the company offers integrated business solutions through operating companies competing collectively, operating collaboratively and innovating digitally under the respected FedEx brand. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its 550,000 employees to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit about.fedex.com.
Jenny Robertson
FedEx Media Relations
(901) 434-8100
AUSTIN, Texas--(BUSINESS WIRE)--USA Compression Partners, LP (NYSE: USAC) (“USA Compression”) today announced that Michael C. Pearl has joined the company as our new Chief Financial Officer. Mike is a seasoned financial and energy veteran with years of experience leading finance and accounting teams. Mike was most recently the Chief Financial Officer at Western Midstream Partners, LP and prior to that held multiple finance roles at Anadarko Petroleum Corporation.
“We are delighted to welcome Mike to the USA Compression team,” said Eric D. Long, USA Compression’s President and Chief Executive Officer. “Mike is an exceptional finance executive and a strategic thought partner who has track record of delivering strong financial and operational results as a public company CFO. I look forward to working closely with Mike as we execute on our strategy to drive growth and value creation.”
The Partnership accepted the resignation of former Chief Financial Officer Matthew C. Liuzzi, to pursue other opportunities and Mr. Long added, “I want to thank Matt for his contributions over the past nine years. He was a key contributor to the growth of our organization. We wish him well in his future endeavors.”
About USA Compression Partners, LP
USA Compression Partners, LP is a growth-oriented Delaware limited partnership that is one of the nation’s largest independent providers of natural gas compression services in terms of total compression fleet horsepower. USA Compression partners with a broad customer base composed of producers, processors, gatherers and transporters of natural gas and crude oil. USA Compression focuses on providing natural gas compression services to infrastructure applications primarily in high-volume gathering systems, processing facilities and transportation applications. More information is available at usacompression.com.
USA Compression Partners, LP
Investor Relations
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WHITE PLAINS, N.Y.--(BUSINESS WIRE)--OPAL Fuels Inc. (Nasdaq: OPAL), a vertically integrated producer and distributor of renewable natural gas (RNG), today announced the closing of a five-year, $105 million senior secured debt facility. The facility provides construction financing for designated OPAL Fuels projects upon achieving certain milestones. The lending syndicate is comprised of Investec, Bank of Montreal, and Comerica Bank.
“The closing of our senior secured debt facility today, combined with the $215.8 million generated from the recent completion of our business combination with ArcLight Clean Transition Corp. II, will facilitate execution of our growth plan,” said Adam Comora, Co-CEO of OPAL Fuels. “We believe these transactions are a testament to the strength of our vertically integrated RNG platform and continued awareness of the pivotal role that RNG plays in decarbonizing the heavy-duty transportation industry now.”
About OPAL Fuels Inc.
OPAL Fuels Inc. (Nasdaq: OPAL), is a leading vertically integrated renewable fuels platform involved in the production and distribution of renewable natural gas (RNG) for the heavy-duty truck market. RNG is a proven low-carbon fuel that is rapidly decarbonizing the transportation industry now while also significantly reducing costs for fleet owners. OPAL Fuels captures harmful methane emissions at the source and recycles the trapped energy into a commercially viable, lower-cost alternative to diesel fuel. OPAL Fuels also develops, constructs, and services RNG and hydrogen fueling stations. As a producer and distributor of carbon-reducing fuel for heavy-duty truck fleets for more than a decade, the company delivers best-in-class, complete renewable solutions to customers and production partners. To learn more about OPAL Fuels and how it is leading the effort to capture North America’s harmful methane emissions and decarbonize the transportation industry, please visit www.opalfuels.com and follow the company on LinkedIn and Twitter at @OPALFuels.
Forward-Looking Statements
Certain statements in this communication may be considered forward-looking statements. Forward-looking statements are statements that are not historical facts and generally relate to future events or OPAL Fuels’ future financial or other performance metrics. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “target,” “plan,” “expect,” or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements, including the identification of a target business and a potential business combination or other such transaction are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied by such forward looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by OPAL Fuels and its management, as the case may be, are inherently uncertain and subject to material change. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, various factors beyond management’s control, including general economic conditions and other risks, uncertainties and factors set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the proxy statement/prospectus filed on June 27, 2022 in connection with our Registration Statement on Form S-4 and other filings with the Securities and Exchange Commission. Nothing in this communication should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this communication, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. OPAL Fuels expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in OPAL Fuels’ expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Disclaimer
This communication is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy, any securities, nor shall there be any sale, issuance or transfer or securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
OPAL Fuels
Media
Jason Stewart
Senior Director Public Relations & Marketing
914-421-5336
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ICR, Inc.
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Investors
Todd Firestone
Vice President Investor Relations & Corporate Development
914-705-4001
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DUBLIN--(BUSINESS WIRE)--The "Global Digital Grid Guidebook" report has been added to ResearchAndMarkets.com's offering.
Value generated by grid optimization digital solutions will reach $22.27 billion in 2025.
The ongoing global and regional efforts to decentralize and decarbonize the energy industry result in an increasingly digitized network that will be a more interconnected, intelligent, and responsive energy infrastructure continuously generating substantial amounts of data.
However, the industry historically lacks innovative technologies and operational tools that leverage these growing volumes of data to generate real-time insights to drive real value for energy utilities and grid operators. Within this context, utilities across the globe are seeking advanced solutions that enable smart monitoring, visualization, and analysis of energy distribution networks, empowering them to enhance power quality while addressing prevalent energy equality challenges.
As a result, there is a growing market need for grid optimization solutions. Despite potential growth opportunities, critical factors, including subsequent COVID-19 waves and the associated decline in revenue, lack of return-on-investment evidence for digital solutions, value-creation uncertainty, and overlapping functionalities of several solutions, are restraining the widespread adoption of digital solutions.
This research helps decision makers within the utility sector to overcome the critical issues they face by evaluating the ecosystem of digital transformation solution providers. Using industry expert dialogues and decision support matrices, this report identified the top 50 digital practitioners across the grid space within the grid industry.
A detailed discussion covers industry innovations and trends with implications for the near future. The study offers the digital solution details of 50 companies and the critical customer issues these solutions address with the justification of why each company is a digital best practitioner.
Digital grid market defined as a suite of digital solutions (software, life cycle services, and associated hardware components) that drive business innovation and operational transformation across the power distribution industry. These solutions can focus on a specific value chain function or span the end-to-end value chain from conceptualization, remote asset monitoring, fault detection, analytics-based insights, predictive maintenance, digital twin, and other life cycle management solutions.
Key Issues Addressed:
Key Topics Covered:
1. Strategic Imperatives
2. Research Summary
3. Market Research Scope, Analysis, Methodology, and Definitions
4. Industry Outlook and Top 8 Predictions for the Grid Industry
5. Growth Opportunity Analysis - Digital Grid Market
6. Market Revenue Forecasts
7. Top 50 Digital Best Practitioner Profiles
8. Growth Opportunity Universe - Digital Grid Market
9. How Can You Better Leverage the Research?
10. Next Steps
For more information about this report visit https://www.researchandmarkets.com/r/k2tfgx
ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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For E.S.T Office Hours Call 1-917-300-0470
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DALLAS--(BUSINESS WIRE)--Primoris Services Corporation (NASDAQ GS: PRIM) (“Primoris” or the “Company”) today announced financial results for its second quarter ended June 30, 2022 and provided the Company’s outlook for 2022.
For the second quarter 2022, Primoris reported the following(1):
2022 Year-to-Date Highlights(1):
(1) |
Please refer to “Non-GAAP Measures” and Schedules 1, 2 and 3 for the definitions and reconciliations of our Non-GAAP financial measures, including “Adjusted Net Income,” “Adjusted EPS” and “Adjusted EBITDA.” |
“We delivered record revenues and significantly increased total backlog in the second quarter, supported by continued strength in our utility and energy/renewables segments. Over 94 percent of our second quarter revenue was driven by these two segments, underscoring the work we have done to expand our presence in growing markets with strong secular tailwinds, which has helped offset declining volumes in our pipeline segment,” said Tom McCormick, President and Chief Executive Officer of Primoris.
“During the quarter, we also announced our acquisition of PLH Group, substantially growing our exposure to attractive, higher-margin utility markets while accelerating our shift towards recurring MSA revenue. PLH’s foothold in the renewable power-to-grid market also creates solid cross-selling opportunities with the solar projects we have recently been awarded and those that we are pursuing, totaling close to half a billion dollars in value year-to-date.”
“While we have faced operational challenges associated with fuel and labor inflation, our teams have done a great job of re-negotiating rates and leveraging commercial discipline to mitigate the impact of these factors going forward,” he added. “Our robust performance this quarter gives us confidence in the long-term strength of our business strategy, and we look forward to continuing this momentum into the latter part of 2022.”
Second Quarter 2022 Results Overview
Revenue was $1,022.9 million for the three months ended June 30, 2022, an increase of $141.3 million, compared to the same period in 2021. The increase was primarily due to an increase in revenue in our Energy/Renewables segment as well as our Utilities segment, partially offset by a decrease in revenue in our Pipeline segment. Gross profit was $92.1 million for the three months ended June 30, 2022, a decrease of $20.9 million compared to the same period in 2021. The decrease was primarily due to a decrease in margins, partially offset by an increase in revenue. Gross profit as a percentage of revenue decreased to 9.0 percent for the three months ended June 30, 2022, compared to 12.8 percent for the same period in 2021, primarily as a result of negative gross margins in the Company’s Pipeline segment, the favorable impact from the closeout of multiple pipeline projects in the Company’s Pipeline segment in 2021, and increased labor, material, and fuel costs in the Company’s Utilities segment. Partially offsetting the overall decline was the favorable impact of the change in useful lives of certain equipment which reduced the Company’s depreciation expense for the three months ended June 30, 2022 by $5.3 million.
This press release includes Non-GAAP financial measures. The Company believes these measures enable investors, analysts and management to evaluate Primoris’ performance excluding the effects of certain items that management believes impact the comparability of operating results between reporting periods. In addition, management believes these measures are useful in comparing the Company’s operating results with those of its competitors. Please refer to “Non-GAAP Measures” and Schedules 1, 2 and 3 for the definitions and reconciliations of the Company’s Non-GAAP financial measures, including “Adjusted Net Income,” “Adjusted EPS” and “Adjusted EBITDA”.
During the second quarter of 2022, net income was $50.2 million compared to net income of $36.3 million in the previous year. Adjusted Net Income was $26.1 million for the second quarter compared to $40.5 million for the same period in 2021. EPS of $0.93 compared to $0.67 in the previous year. Adjusted EPS was $0.48 for the second quarter of 2022 compared to $0.75 for the second quarter of 2021. Adjusted EBITDA was $56.1 million for the second quarter of 2022, compared to $83.4 million for the same period in 2021.
The Company’s three segments are: Utilities, Energy/Renewables and Pipeline Services (“Pipeline”). Revenue and gross profit for the segments for the three and six months ended June 30, 2022 and 2021 were as follows:
Segment Revenue (in thousands, except %) (unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||
|
|
For the three months ended June 30, |
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|
|
2022 |
|
2021 |
||||||||
|
|
|
|
|
% of |
|
|
|
|
% of |
||
|
|
|
|
|
Total |
|
|
|
|
Total |
||
Segment |
|
Revenue |
|
Revenue |
|
Revenue |
|
Revenue |
||||
Utilities |
|
$ |
476,121 |
|
46.5 |
% |
|
$ |
425,421 |
|
48.3 |
% |
Energy/Renewables |
|
|
486,349 |
|
47.6 |
% |
|
|
335,010 |
|
38.0 |
% |
Pipeline |
|
|
60,478 |
|
5.9 |
% |
|
|
121,179 |
|
13.7 |
% |
Total |
|
$ |
1,022,948 |
|
100.0 |
% |
|
$ |
881,610 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
For the six months ended June 30, |
||||||||||
|
|
2022 |
|
2021 |
||||||||
|
|
|
|
|
% of |
|
|
|
|
% of |
||
|
|
|
|
|
Total |
|
|
|
|
Total |
||
Segment |
|
Revenue |
|
Revenue |
|
Revenue |
|
Revenue |
||||
Utilities |
|
$ |
834,849 |
|
46.2 |
% |
|
$ |
760,433 |
|
44.7 |
% |
Energy/Renewables |
|
|
845,399 |
|
46.8 |
% |
|
|
687,874 |
|
40.5 |
% |
Pipeline |
|
|
127,085 |
|
7.0 |
% |
|
|
251,632 |
|
14.8 |
% |
Total |
|
$ |
1,807,333 |
|
100.0 |
% |
|
$ |
1,699,939 |
|
100.0 |
% |
Segment Gross Profit (in thousands, except %) (unaudited) |
||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|||
|
|
For the three months ended June 30, |
|
|||||||||||
|
|
2022 |
|
2021 |
|
|||||||||
|
|
|
|
|
% of |
|
|
|
|
% of |
|
|||
|
|
|
|
|
Segment |
|
|
|
|
Segment |
|
|||
Segment |
|
Gross Profit |
|
Revenue |
|
Gross Profit |
|
Revenue |
|
|||||
Utilities |
|
$ |
40,356 |
|
|
8.5 |
% |
|
$ |
48,849 |
|
11.5 |
% |
|
Energy/Renewables |
|
|
53,143 |
|
|
10.9 |
% |
|
|
33,232 |
|
9.9 |
% |
|
Pipeline |
|
|
(1,390 |
) |
|
(2.3 |
%) |
|
|
30,945 |
|
25.5 |
% |
|
Total |
|
$ |
92,109 |
|
|
9.0 |
% |
|
$ |
113,026 |
|
12.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
For the six months ended June 30, |
|
|||||||||||
|
|
2022 |
|
2021 |
|
|||||||||
|
|
|
|
|
% of |
|
|
|
|
% of |
|
|||
|
|
|
|
|
Segment |
|
|
|
|
Segment |
|
|||
Segment |
|
Gross Profit |
|
Revenue |
|
Gross Profit |
|
Revenue |
|
|||||
Utilities |
|
$ |
62,709 |
|
|
7.5 |
% |
|
$ |
70,565 |
|
9.3 |
% |
|
Energy/Renewables |
|
|
93,074 |
|
|
11.0 |
% |
|
|
75,904 |
|
11.0 |
% |
|
Pipeline |
|
|
(7,189 |
) |
|
(5.7 |
%) |
|
|
46,738 |
|
18.6 |
% |
|
Total |
|
$ |
148,594 |
|
|
8.2 |
% |
|
$ |
193,207 |
|
11.4 |
% |
|
Utilities Segment (“Utilities”): Revenue increased by $50.7 million, or 12 percent, for the three months ended June 30, 2022, compared to the same period in 2021, primarily due to increased activity with power delivery customers ($38.7 million). Gross profit for the three months ended June 30, 2022 decreased by $8.5 million, or 17 percent, compared to the same period in 2021, due to lower margins, partially offset by higher revenue. Gross profit as a percentage of revenue decreased to 8.5 percent during the three months ended June 30, 2022, compared to 11.5 percent in the same period in 2021, primarily due to increased fuel and labor costs from the inflationary environment we are experiencing in 2022.
Energy and Renewables Segment (“Energy/Renewables”): Revenue increased by $151.3 million, or 45 percent, for the three months ended June 30, 2022, compared to the same period in 2021, primarily due to increased renewable energy activity ($98.6 million) and electric power activity that began in the third quarter of 2021. Gross profit for the three months ended June 30, 2022, increased by $19.9 million, or 60 percent, compared to the same period in 2021, primarily due to higher revenue and margins. Gross profit as a percentage of revenue increased to 10.9 percent during the three months ended June 30, 2022, compared to 9.9 percent in the same period in 2021, primarily due to higher costs associated with a liquified natural gas (“LNG”) project in the northeast in 2021 and increased revenue on higher margin renewable energy projects in 2022.
Pipeline Services (“Pipeline”): Revenue decreased by $60.7 million, or 50 percent, for the three months ended June 30, 2022, compared to the same period in 2021. The decrease is primarily due to the substantial completion of four pipeline projects in 2021 ($63.6 million) and a decline in the overall midstream pipeline market demand. Gross profit for the three months ended June 30, 2022 decreased by $32.3 million compared to the same period in 2021, primarily due to lower revenue and margins. Gross profit as a percentage of revenue decreased to (2.3 percent) during the three months ended June 30, 2022, compared to 25.5 percent in the same period in 2021, primarily due to lower than anticipated volumes in 2022, which lead to higher relative carrying costs for equipment and personnel. In addition, we had a favorable impact from the closeout of multiple pipeline projects in 2021.
Other Income Statement Information
Selling, general and administrative (“SG&A”) expenses were $59.7 million for the three months ended June 30, 2022, an increase of $2.0 million, or 3 percent, compared to 2021. SG&A expense as a percentage of revenue decreased to 5.8 percent in 2022 compared to 6.6 percent in 2021 primarily due to increased revenue.
Interest expense, net for the three months ended June 30, 2022 was $4.7 million compared to $4.8 million for the three months ended June 30, 2021. The decrease of $0.1 million was due to a favorable impact from the change in the fair value of our interest rate swap, partially offset by higher average debt balances from the borrowings incurred related to the FIH acquisition as well as a higher average interest rate.
The Company recorded an income tax expense for the three months ended June 30, 2022 of $13.1 million compared to income tax expense of $13.6 million for the three months ended June 30, 2021. The effective tax rate was 20.7 percent for the three months ended June 30, 2022. The rate differs from the U.S. federal statutory rate of 21 percent, primarily due to state income taxes net of the effects of a release in a valuation allowance during the second quarter.
Sale and Leaseback Transaction
The company completed a sale and leaseback transaction of land and buildings in California for an aggregate sales price, net of closing costs, of $49.9 million and recorded a gain on the transaction of $40.1 million as we continue to reduce costs and improve our operational footprint.
Outlook
The Company is raising its estimates for the year ending December 31, 2022. Net income is expected to be between $2.40 and $2.60 per fully diluted share. Adjusted EPS is estimated in the range of $2.39 to $2.59 for 2022.
The Company is targeting SG&A expense as a percentage of revenue in the low-to-mid six percent range for the 2022 calendar year. The Company’s targeted gross margins by segment are as follows: Utilities in the range of 10 to 13 percent; Energy/Renewables in the range of 9 to 12 percent; and Pipeline in the range of 1 to 3 percent for 2022. The Company expects its effective tax rate for 2022 to be approximately 20.5 percent but may vary depending on the mix of states in which the Company operates.
During the three months ended June 30, 2022, the Company spent approximately $65.8 million for capital expenditures, which included $36.6 million for construction equipment. Capital expenditures for the remaining six months of 2022 are expected to total between $60 million and $70 million, which includes $30 million to $40 million for construction equipment.
The guidance provided above constitutes forward-looking statements, which are based on current economic conditions and estimates, and the Company does not include other potential impacts, such as changes in accounting or unusual items. Supplemental information relating to the Company’s financial outlook is posted in the Investor Relations section of the Company’s website at www.primoriscorp.com.
Backlog (in millions) |
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|
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Backlog at June 30, 2022 |
|||||||
Segment |
|
Fixed Backlog |
|
MSA Backlog |
|
Total Backlog |
|||
Utilities |
|
$ |
12 |
|
$ |
1,547 |
|
$ |
1,559 |
Energy/Renewables |
|
|
2,720 |
|
|
159 |
|
|
2,879 |
Pipeline |
|
|
76 |
|
|
58 |
|
|
134 |
Total |
|
$ |
2,808 |
|
$ |
1,764 |
|
$ |
4,572 |
At June 30, 2022, Fixed Backlog was $2.8 billion, an increase of $387 million, or 16 percent compared to $2.4 billion at March 31, 2022. MSA Backlog represents estimated MSA revenue for the next four quarters. MSA Backlog was $1.8 billion, an increase of 10 percent, compared to $1.6 billion at March 31, 2022. Total Backlog as of June 30, 2022 was $4.6 billion. The Company expects that during the next four quarters, the Company will recognize as revenue approximately 76 percent of the total backlog at June 30, 2022, composed of backlog of approximately: 100 percent of Utilities; 62 percent of Energy/Renewables; and 100 percent of Pipeline.
Backlog, including estimated MSA revenue, should not be considered a comprehensive indicator of future revenue. Revenue from certain projects where scope, and therefore contract value, is not adequately defined, is not included in Fixed Backlog. At any time, any project may be cancelled at the convenience of the Company’s customers.
Liquidity and Capital Resources
As of June 30, 2022, the Company had $91.3 million of unrestricted cash and cash equivalents. The Company had $65.0 million of outstanding borrowings under the revolving credit facility, commercial letters of credit outstanding were $29.3 million and the available borrowing capacity was $105.7 million.
Dividend
The Company also announced that on August 3, 2022, its Board of Directors declared a $0.06 per share cash dividend to stockholders of record on September 30, 2022, payable on October 14, 2022.
The Company has paid consecutive quarterly cash dividends since 2008, and currently expects that comparable cash dividends will continue to be paid for the foreseeable future. The declaration and payment of future dividends is contingent upon the Company’s revenue and earnings, capital requirements, and general financial conditions, as well as contractual restrictions and other considerations deemed to be relevant by the Board of Directors.
Share Purchase Program
In November 2021, the Company’s Board of Directors authorized a $25.0 million share purchase program. In February 2022, the Company’s Board of Directors replenished the limit to $25.0 million. During the three months ended June 30, 2022, the Company purchased and cancelled 148,000 shares of common stock, which in the aggregate equaled $3.4 million at an average share price of $22.77. As of June 30, 2022, we had $21.6 million remaining for purchase under the share purchase program. The share purchase plan expires on December 31, 2022.
Response to the COVID-19 Pandemic
The Company continues to take steps to protect its employees’ health and safety during the COVID-19 pandemic. Primoris has a written corporate COVID-19 Plan in place, as well as Business Continuity Plans (by business unit and segment), based on guidelines from the U.S. Centers for Disease Control and Prevention, the Occupational Safety and Health Administration, and their Canadian counterparts.
Conference Call and Webcast
As previously announced, management will host a teleconference call on Tuesday, August 9, 2022, at 9 a.m. U.S. Central Time (10 a.m. U.S. Eastern Time). Tom McCormick, President and Chief Executive Officer, and Ken Dodgen, Executive Vice President and Chief Financial Officer, will discuss the Company’s results and financial outlook.
Investors and analysts are invited to participate by phone at 1-888-330-3428, or internationally at 1-646-960-0679 (access code: 7581464) or via the Internet at www.primoriscorp.com. A replay of the call will be available on the Company’s website or by phone at 1-800-770-2030, or internationally at 1-647-362-9199 (access code: 7581464), for a seven-day period following the call.
Presentation slides to accompany the conference call are available for download in the Investor Relations section of Primoris’ website at www.primoriscorp.com. Once at the Investor Relations section, please click on “Events & Presentations.”
Non-GAAP Measures
This press release contains certain financial measures that are not recognized under generally accepted accounting principles in the United States (“GAAP”). Primoris uses earnings before interest, income taxes, depreciation and amortization (“EBITDA”), Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS as important supplemental measures of the Company’s operating performance. The Company believes these measures enable investors, analysts, and management to evaluate Primoris’ performance excluding the effects of certain items that management believes impact the comparability of operating results between reporting periods. In addition, management believes these measures are useful in comparing the Company’s operating results with those of its competitors. The non-GAAP measures presented in this press release are not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, Primoris’ method of calculating these measures may be different from methods used by other companies, and, accordingly, may not be comparable to similarly titled measures as calculated by other companies that do not use the same methodology as Primoris. Please see the accompanying tables to this press release for reconciliations of the following non‐GAAP financial measures for Primoris’ current and historical results: EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS.
About Primoris
Primoris Services Corporation is a leading specialty contractor providing critical infrastructure services to the utility, energy/renewables and pipeline services markets throughout the United States and Canada. The Company supports a diversified base of blue-chip customers with engineering, procurement, construction and maintenance services. A focus on multi-year master service agreements and an expanded presence in higher-margin, higher-growth markets such as utility-scale solar facility installations, renewable fuels, power delivery systems and communications infrastructure have also increased the Company’s potential for long-term growth. Additional information on Primoris is available at www.primoriscorp.com.
Forward Looking Statements
This press release contains certain forward-looking statements, including the Company’s outlook, that reflect, when made, the Company’s expectations or beliefs concerning future events that involve risks and uncertainties, including with regard to the Company’s future performance. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates”, “believes”, “could”, “estimates”, “expects”, “intends”, “may”, “plans”, “potential”, “predicts”, “projects”, “should”, “will”, “would” or similar expressions. Forward-looking statements include information concerning the possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of regulation and the economy, generally. Forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results may differ materially as a result of a number of factors, including, among other things, customer timing, project duration, weather, and general economic conditions; changes in the mix of customers, projects, contracts and business; regional or national and/or general economic conditions and demand for the Company’s services; macroeconomic impacts arising from the long duration of the COVID-19 pandemic, including labor shortages and supply chain disruptions; price, volatility, and expectations of future prices of oil, natural gas, and natural gas liquids; variations and changes in the margins of projects performed during any particular quarter; increases in the costs to perform services caused by changing conditions; the termination, or expiration of existing agreements or contracts; the budgetary spending patterns of customers; inflation and other increases in construction costs that the Company may be unable to pass through to customers; cost or schedule overruns on fixed-price contracts; availability of qualified labor for specific projects; changes in bonding requirements and bonding availability for existing and new agreements; the need and availability of letters of credit; costs incurred to support growth, whether organic or through acquisitions; the timing and volume of work under contract; losses experienced in the Company’s operations; the results of the review of prior period accounting on certain projects and the impact of adjustments to accounting estimates; developments in governmental investigations and/or inquiries; intense competition in the industries in which the Company operates; failure to obtain favorable results in existing or future litigation or regulatory proceedings, dispute resolution proceedings or claims, including claims for additional costs; failure of partners, suppliers or subcontractors to perform their obligations; cyber-security breaches; failure to maintain safe worksites; risks or uncertainties associated with events outside of the Company’s control, including severe weather conditions, public health crises and pandemics (such as COVID-19), war or other armed conflict (including Russia’s invasion of Ukraine), political crises or other catastrophic events; client delays or defaults in making payments; the availability of credit and restrictions imposed by credit facilities; failure to implement strategic and operational initiatives; risks or uncertainties associated with acquisitions, dispositions and investments; possible information technology interruptions or inability to protect intellectual property; the Company’s failure, or the failure of the Company’s agents or partners, to comply with laws; the Company's ability to secure appropriate insurance; new or changing legal requirements, including those relating to environmental, health and safety matters; the loss of one or a few clients that account for a significant portion of the Company's revenues; asset impairments; and risks arising from the inability to successfully integrate acquired businesses. In addition to information included in this press release, additional information about these and other risks can be found in Part I, Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, and the Company’s other filings with the U.S. Securities and Exchange Commission (“SEC”). Such filings are available on the SEC’s website at www.sec.gov. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements. Primoris does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Ken Dodgen
Executive Vice President, Chief Financial Officer
(214) 740-5608
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Jeremy Apple
Investor Relations
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LEMONT, Ill.--(BUSINESS WIRE)--#advancedfission--Oklo Inc. co-hosted the U.S. Secretary of Energy Jennifer M. Granholm at Argonne National Laboratory (Argonne), where she toured state-of-the-art experimental liquid metal and fuel recycling facilities. Oklo and Argonne are currently partnered on four DOE awards through the Gateway for Accelerated Innovation in Nuclear (GAIN), Technology Commercialization Fund (TCF), ARPA-E OPEN, and ARPA-E ONWARDS. The projects will support the commercialization and licensing of advanced fission technologies, as well as the deployment of fuel recycling to enable a safe, sustainable, and economically competitive domestic fuel supply chain.
“Oklo, Argonne and the Department of Energy are committed to accelerating the deployment of advanced fission to support decarbonization and energy security,” said Jacob DeWitte, co-founder and CEO of Oklo. “Next generation fast reactors enable new economic paradigms in power generation, supported by recycling used fuel. Argonne scientists and engineers are world leaders in fast reactor and fuel recycling technologies. We are proud to partner with DOE and Argonne to deploy fast reactors and fuel recycling capabilities to support the fuel supply chain for the next generation of fission power plants,” added DeWitte.
Three of the four projects that Oklo is working on with Argonne are focused on recycling technology development. One project was funded through the TCF program, established to mature promising energy technologies with the potential for high impact. Two projects were funded through ARPA-E, which advances high-potential, high-impact energy technologies, and all three recycling projects are taking place at the Pilot-Scale Electro Refiner Lab. GAIN also awarded Oklo a voucher for experimental liquid metal thermal hydraulic work at Argonne’s new Mechanisms Engineering Test Loop (METL) facility.
In total, Oklo has participated in seven DOE funded projects with Argonne National Lab. These public-private partnerships are vital for bringing clean energy technologies to market. Strengthened by the commitment of DOE’s partnerships, Oklo’s leading work in commercializing advanced fission and fuel recycling technologies will advance the deployment of clean, affordable, and reliable energy to help meet our nation’s decarbonization goals and improve our energy security.
About Oklo Inc.: Oklo Inc. (Oklo) is a California-based company developing advanced fission power plants to provide emission-free, reliable, and affordable energy. Oklo received a Site Use Permit from the U.S Department of Energy, has performed successful fabrication of fuel prototypes, was awarded fuel material from Idaho National Laboratory, developed the first advanced fission combined license application accepted and docketed by the U.S. Nuclear Regulatory Commission, and is developing waste-to-energy fuel recycling technology in collaboration with the U.S. Department of Energy and several national laboratories.
Media Contact for Oklo:
Bonita Chester
Director of Marketing and External Relations
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JACKSONVILLE, Fla.--(BUSINESS WIRE)--$RDW--Redwire Corporation (NYSE: RDW; “Redwire” or “the Company”) today announced that it will report financial results for the second quarter ended June 30, 2022, at 7 a.m. ET on Wednesday, August 10, 2022.
Management will conduct a conference call starting at 9 a.m. ET on Wednesday August 10, 2022 to review financial results for the second quarter. The earnings conference call can be accessed by calling 877-485-3108 (toll-free) or 201-689-8264 (toll).
A presentation with slides will also be live streamed. Please click the link below to follow along with the live stream: https://event.choruscall.com/mediaframe/webcast.html?webcastid=f52OeAqX.
The listen-only audio webcast of the call will be available in the investor relations area of our website at redwirespace.com. Please call in or log on at least five minutes in advance of the scheduled start time.
For those who are unable to listen to the live event, a replay will be available for two weeks following the event by dialing 877-660-6853 (toll-free) or 201-612-7415 (toll) and entering the access code 13732244. To access the webcast replay, visit the investor relations area of our website at redwirespace.com
The earnings release and other information related to the earnings announcement will be available on redwirespace.com
About Redwire
Redwire Corporation (NYSE: RDW) is a leader in space infrastructure for the next generation space economy, with valuable IP for solar power generation and in-space 3D printing and manufacturing. With decades of flight heritage combined with the agile and innovative culture of a commercial space platform, Redwire is uniquely positioned to assist its customers in solving the complex challenges of future space missions. For more information, please visit redwirespace.com
Investors:
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DUBLIN--(BUSINESS WIRE)--The "Global Wind Turbine Market: Analysis By Location, By Axis, By Component, By Application, By Region, Size and Trends with Impact of COVID-19 and Forecast up to 2026" report has been added to ResearchAndMarkets.com's offering.
The global wind turbine market was valued at US$70.54 billion in 2021, and is expected to be worth US$94.26 billion in 2026 and is determined to grow at a CAGR of 5.97% over the forecasted period of 2022-2026.
Wind power is a type of renewable energy. As various governments are adopting initiatives to combat the climate change renewable energy is experiencing great growth. Compared to many other energy sources, producing energy from the wind has lesser impact on the environment. With few exceptions, wind turbines do not emit pollutants that can harm the environment.
Additionally, wind turbines may lessen the amount of fossil fuels used to generate energy, which lowers overall air pollution and carbon dioxide emissions.
Wind turbines are mechanical devices used in wind power plants. Wind turbine uses the aerodynamic force of rotor blades, which function similarly to an aero plane wing or a helicopter rotor blade, to transform wind energy into electricity.
Market Dynamics:
Growth Drivers: One of the key drivers of the market's expansion is an increase in investments in wind power generation. The market will be driven in the upcoming years by the various wind projects that are currently under construction and will eventually be completed. Other significant growth factors of the market include declining Levelized Cost of Energy (LCOE), federal and state policy support, road to net zero, wind turbine financing, etc.
Challenges: However, some challenges are impeding the growth of the market such as high entry barriers, high maintenance and challenges with turbine blades. The challenges associated with the design, manufacture, and usage of wind assets include corrosion, fatigue, erosion, lightning strikes, and biofouling, to name just a few. Challenges with the foundations and transition piece have negatively affected the wind turbine market.
Trends: The market is projected to grow at a fast pace during the forecast period, due to various latest trends such as increasing average turbine size, power to X and green hydrogen, increasing distance to shore and greater water depths, and technological advancements. Another significant trend is the relocation of offshore wind farms farther from the coast in order to take advantage of improved wind conditions and as a result of the exhaustion of near-shore locations.
The offshore wind farms are near to the shore, yet there is often a lengthy distance to the port in markets like Taiwan. Similar trends are being observed in the US, where the offshore wind farm may be located in a different state than where it sells its power. Generally, deeper water is found where there is a larger distance from the shore. Technological advancements have made bottom-fixed offshore wind possible at deeper sea depths.
Market Segmentation Analysis:
By Location: The report identifies two segments on the basis of location: Onshore and Offshore. Among the location, it is anticipated that the offshore location would experience a significant growth, rising at a CAGR of 7.76%. Advantages of the offshore wind turbine include increased power output as a result of steady wind flow and speedy installation of the turbines.
As large corporations in the nations turn to adopting renewable and clean energy sources, the installation of offshore wind turbines is anticipated to increase during the forecast period. The global offshore wind turbine market can be divided in two segments, on the basis of installation: Fixed and Floating. In 2021, fixed wind turbine dominated the global offshore wind turbine market with a share of 93.7%.
By Axis: The report identifies two segments on the basis of axis: Horizontal Axis and Vertical Axis. Among the axis, it is anticipated that the vertical wind turbines would experience the highest
CAGR of more than 8% during the forecasted period due to their capacity to produce power efficiently in unstable and harsh situations. Some of the essential factors that would propel the demand for the vertical wind turbines across residential applications are low installation and maintenance costs, limited ground requirements, and ease of operation.
By Component: The report provides the bifurcation of wind turbine market into five segments on the basis of components: Rotator Blade, Generator, Gearbox, Nacelle and Others. The rotator blade segment dominated the market in 2021, with a share of around 31%, Wind turbine rotator blades are airfoil-shaped blades that utilize wind energy to move the rotator of the wind turbine.
The blades may exert lift in the opposite direction of the wind due to the airfoil-shaped design. The wind turbine is propelled by this force vector, which acts on the rotor. Growing competition among industry participants to enhance production capacity has led to a significant decrease in the price of rotator blades, which has increased its installation.
By Application: The report identifies two segments on the basis of applications: Utility and Non Utility. Among the application, utility segment dominated the market in 2021, captured a share of around 86%. Utility-scale wind turbines are often erected in sizable wind farms with several turbines that are linked to the country's transmission network.
Large-scale utility-scale wind generating projects necessitate several land, building, and other permissions in addition to careful relationship management with various process players. Increasing rotator blade size, increasing area of wind farms, increasing efficiency of wind turbines along declining costs are the factors foreseen to drive the growth of utility wind turbine market in coming years.
By Region: In the report, the global wind turbine market is divided into five regions: Asia Pacific, Europe, North America, Latin America and Middle east and Africa. Asia Pacific accounted for the largest share of around 42% in the global wind turbine market in 2021. Asia-installed Pacific's wind capacity climbed from 283 GW in 2019 to 336 GW in 2020.
The growth in wind capacity has mostly been driven by China's installed capacity. With roughly 38 GW of installed wind power in 2020, India will hold the fourth-largest position globally. By 2022, the government hopes to have 60 GW of onshore wind and 5 GW of offshore wind installed. To reach this goal, it is anticipated that there will be a significant increase in the number of projects during the next two years.
Competitive Landscape:
The global wind turbine market is moderately concentrated. Market players have implemented sustainable growth techniques in the market. To strengthen their position in the market, some of the leading competitors are pursuing various growth methods such as mergers, acquisitions, collaborations, and agreements.
The key players in the global Wind turbine market are:
Market Dynamics
Growth Drivers
Challenges
Market Trends
For more information about this report visit https://www.researchandmarkets.com/r/e9mb6m
ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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HOUSTON--(BUSINESS WIRE)--#business--NanoTech has joined Class 2 of the Rice Alliance Clean Energy Accelerator—Houston’s preeminent clean energy startup accelerator.
The accelerator invites promising, transformative global energy tech startups to participate in an annual program that kicks off in September in Houston. Once in the program, startups have access to 70+ industry experts and successful entrepreneurs serving as mentors, as well as a dedicated leadership team including five Executives-in-Residence, who bring extensive field expertise and will provide personalized guidance and mentorship.
Selected from an impressive pool of global applicants, NanoTech will join 16 others in the second cohort of the accelerator. Collectively, these startups are driving innovation in Advanced Materials, Digital Technology for Energy, Energy Efficiency, Energy Storage, Geothermal Energy, Hydrogen, Waste Heat to Power, Wave Energy and Wind Energy.
“We are excited to join one of the top Clean Energy Accelerators in the world. NanoTech’s advance materials have the potential to transform the fireproofing and energy efficiency landscape and joining this program gets us one step closer to our goals.” – Mike Francis – Co-Founder and CEO of NanoTech
NanoTech is a material science company based in Houston, Texas. They develop particles which can be incorporated into many building materials to fireproof and thermally insulate. They also have a coating system which fireproofs to 1,800° C at minimal thickness and thermally insulates buildings to significantly reduce energy consumption. Their roof coating reduces heat flow from the roof to save energy, reduce carbon footprint, and save money for the building owner. Their technology has the highest thermal emittance and lowest heat transfer available.
“We are excited to commercialize and scale this breakthrough technology. Structuring this innovation process through the clean energy program will help shape our technology to best serve society.” - Hani Taan – Co-Founder and CSO of NanoTech
The Rice Alliance for Technology and Entrepreneurship at Rice University has a 20+ year history of supporting startups, tech and the innovation ecosystem. Since inception, more than 978 energy tech ventures have participated in our energy forums and raised more than $7.2 billion in funding.
Learn more about the Rice Alliance Clean Energy Accelerator at ricecleanenergy.org and learn more about NanoTech at thenanoshield.com.
For media inquiries please Laura Kelsey at This email address is being protected from spambots. You need JavaScript enabled to view it. or call (888) 296-6266.
Laura Kelsey
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Investments in Infrastructure and Operations Continue
HOUSTON--(BUSINESS WIRE)--Port Houston Executive Director Roger Guenther provided a mid-year cargo report to the Port Commission of the Port of Houston Authority during its regular monthly meeting on August 2. “We’re at the halfway point of 2022, and Port Houston business is strong across the board,” he said. “Total tonnage across all the public facilities is up 24% year-to-date.”
Guenther noted that general cargo tonnage through June was double last year’s volume. “Import steel is at levels we haven’t seen in nearly a decade,” he said, as the public general cargo facilities recorded 2.7 million tons through June. Port Houston’s public container terminals additionally handled 1.9 million twenty-foot-equivalent units through June, an increase of 18%.
During the meeting the Port Commission authorized more than $150 million in awards towards improvements in infrastructure and operation of the Houston Ship Channel and Port Houston.
The commission approved a $40 million contract for purchasing three dockside electric ship-to-shore (STS) container cranes for Bayport Terminal. Executive staff noted this investment would permit Bayport Terminal to handle 15,000 TEU ships, aligning with Port Houston’s investment in the Houston Ship Channel Expansion Program - Project 11, aimed to accommodate larger vessels calling the region.
The Port Commission also approved a $65 million purchase of 26 new hybrid-electric rubber-tired-gantry (RTG) yard cranes. Adding to the 116 RTG fleet at the two terminals, these new cranes aim to reduce emissions by 70%. Port Houston’s investments in electric and hybrid terminal equipment also align with its goal of working towards net carbon neutrality by 2050.
Another agenda highlight was more than $31 million invested in Barbours Cut Terminal for the reconstruction of Container Yards 4 North and 5 North, totaling 87 acres.
Finally, the meeting marked the first anniversary of the launch of Port Houston’s Business Equity Division. The work of the division in supporting one of Port Houston’s primary strategic goals has included leading a heightened focus on Diversity, Equity, and Inclusion, implementing the organization’s Minority/Woman-owned Business Enterprise (MWBE) program, and carrying out enhanced Small Business Development activities.
The next regular Port Commission meeting is on September 27.
About Port Houston
For more than 100 years, Port Houston has owned and operated the public wharves and terminals along the Houston Ship Channel, including the area’s largest breakbulk facility and two of the most efficient container terminals in the country. Port Houston is the advocate and a strategic leader for the Channel. The Houston Ship Channel complex and its more than 200 public and private terminals, collectively known as the Port of Houston, is the nation’s largest port for waterborne tonnage and an essential economic engine for the Houston region, the state of Texas and the U.S. The Port of Houston supports the creation of nearly 1.35 million jobs in Texas and 3.2 million jobs nationwide, and economic activity totaling $339 billion in Texas – 20.6 percent of Texas’ total gross domestic product (GDP) – and $801.9 billion in economic impact across the nation. For more information, visit the website at PortHouston.com.
Lisa Ashley-Daniels, Director, Media Relations, Office: 713-670-2644; Mobile: 832-247-8179; E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
TULSA, Okla.--(BUSINESS WIRE)--Williams (NYSE: WMB) and PennEnergy Resources, LLC, an EnCap Investments portfolio company in the Appalachian Basin, announced today they have entered into an agreement to support the marketing and delivery of certified, low emissions next gen natural gas. The agreement includes an independent, third-party certification process that verifies best practices are being followed to minimize emissions and produce natural gas in the most environmentally responsible manner. Through its Sequent business, Williams is building a marketing portfolio to sell low-carbon next gen gas to utilities, LNG export facilities and other clean energy users.
“This is another exciting step in our multi-faceted strategy to grow the delivery of next gen gas to markets across the United States as well as overseas,” said Chad Zamarin, senior vice president of Corporate Strategic Development for Williams. “With our large-scale gathering and processing footprint in the best U.S. production basins, our connectivity to the nation’s biggest natural gas customers and our industry-leading Sequent marketing platform, we are extremely well positioned to facilitate the efficient gathering, marketing and transportation of responsibly sourced natural gas.”
“We are excited for this partnership and future opportunities to deliver responsibly sourced natural gas to meet the market’s growing demands,” said PennEnergy Resources Chairman and CEO Rich Weber. “PennEnergy welcomes higher standards in the marketplace, which play to our strengths, highlighting our dedication and investments made over many years to ensure the safety of our employees, the community and the environment.” The Appalachian-sourced natural gas is derived from PennEnergy’s 378 production wells in southwest Pennsylvania that have achieved Project Canary’s TrustWell™ certification. Every well pad inspected achieved Platinum status, the highest rating available.
The agreement with PennEnergy builds on Williams’ strategy to gather, market and transport low-carbon natural gas from well-head to end-user. Williams recently entered a partnership with decarbonization technology provider Context Labs, as well as a collaboration with Cheniere Energy, Inc., the largest U.S. producer of liquefied natural gas (LNG) to implement quantification, monitoring, reporting and verification (QMRV) of greenhouse gas (GHG) emissions at natural gas gathering, processing, transmission, and storage systems. In addition to pursuing next gen natural gas solutions, Williams is developing clean hydrogen, CCUS, solar and renewable natural gas projects as part of its focus on commercializing innovative technologies, markets and business models that support a clean energy economy.
About Williams
As the world demands reliable, low-cost, low-carbon energy, Williams (NYSE: WMB) will be there with the best transport, storage and delivery solutions to reliably fuel the clean energy economy. Headquartered in Tulsa, Oklahoma, Williams is an industry-leading, investment grade C-Corp with operations across the natural gas value chain including gathering, processing, interstate transportation, storage, wholesale marketing and trading of natural gas and natural gas liquids. With major positions in top U.S. supply basins, Williams connects the best supplies with the growing demand for clean energy. Williams owns and operates more than 30,000 miles of pipelines system wide – including Transco, the nation’s largest volume and fastest growing pipeline – and handles approximately 30 percent of the natural gas in the United States that is used every day for clean-power generation, heating and industrial use. Learn how the company is leveraging its nationwide footprint to incorporate clean hydrogen, next generation gas and other innovations at www.williams.com.
MEDIA:
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(800) 945-8723
INVESTOR CONTACT:
Danilo Juvane
(918) 573-5075
Grace Scott
(918) 573-1092
DUBLIN--(BUSINESS WIRE)--The "Global Internet of Things and Big Data Growth Opportunities" report has been added to ResearchAndMarkets.com's offering.
The study analyzes key drivers and restraints influencing the global IoT and Big Data market growth and provides a connection forecast of the total IoT devices for sustainability applications from 2022 to 2026, with the base year 2021.
This study provides a snapshot of the emerging IoT and Big Data solutions that help businesses achieve their ESG goals, specifically environmental goals.
The study also includes use cases of sustainable solutions with IoT and Big Data technologies and the profiles of notable technology companies and telecommunication operators providing these solutions. The publisher rounds off the study with three key growth opportunities for IoT and Big Data technologies on which stakeholders can capitalize: digital infrastructures, forest monitoring, and sustainable manufacturing.
As companies align their environmental, social, and governance (ESG) goals with the United Nations Sustainability Development Goals (SDG), they increasingly adopt the Internet of Things (IoT) and Big Data technologies to improve their performance.
Integrating IoT with other digital technologies, such as blockchain, data analytics, artificial intelligence, machine learning, and the cloud, is fundamental for meeting ESG and SDG priorities.
The publisher estimates the sustainability industry to have 5 billion IoT-connected devices as of December 2021 (16.6% of the total IoT devices).
Key Topics Covered:
1 Strategic Imperatives
2 Key Findings
3 Market Definitions and Scope of Analysis
4 ESG Overview
5 IoT and Big Data to Achieve ESG Goals
6 Growth Opportunity Analysis
7 Selected Use Cases by Region
8 Technology Companies and Telcos Address ESG Goals with IoT and Big Data
9 Growth Opportunity Universe
10 Appendix
For more information about this report visit https://www.researchandmarkets.com/r/r0dec6
ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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OKLAHOMA CITY--(BUSINESS WIRE)--LSB Industries, Inc. (“LSB” or “the Company”), (NYSE: LXU), today announced that its Board of Directors has authorized an increase in the size of the Company’s previously announced $50 million stock repurchase program implemented in May 2022. Under the expanded program, LSB Industries may now repurchase up to $100 million of its outstanding common stock, of which approximately $85 million remains available for future repurchases.
Mark Behrman, LSB Industries’ President, and Chief Executive Officer of LSB commented, “Our decision to expand the share repurchase authorization reflects not only the strength of our balance sheet and the strong profitability and robust free cash flow that we generated in our 2022 second quarter but is also indicative of the favorable outlook for our business through the balance of 2022 and 2023. The repurchase of our common stock is one of multiple ways we look to drive shareholder value, along with continued operational improvement, execution on our organic growth opportunities including the debottlenecking of our facilities, and potential strategic acquisitions.”
Under the repurchase program shares may be repurchased in the open market or in private transactions and may be pursuant to any trading plan that may be adopted in accordance with applicable securities laws and regulations, including Rule 10b5-1 of the Securities Exchange Act of 1934.
The timing and amount of any shares repurchased will depend on a variety of factors, including the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital and LSB’s financial performance. Open market purchases will be conducted in accordance with the limitations set forth in Rule 10b-18 of the Exchange Act and other applicable legal requirements.
The repurchase program may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. The repurchase program does not obligate LSB Industries to purchase any particular number of shares.
About LSB Industries, Inc.
LSB Industries, Inc., headquartered in Oklahoma City, Oklahoma, manufactures and sells chemical products for the agricultural, mining, and industrial markets. The Company owns and operates facilities in Cherokee, Alabama, El Dorado, Arkansas and Pryor, Oklahoma, and operates a facility for a global chemical company in Baytown, Texas. LSB’s products are sold through distributors and directly to end customers primarily throughout the United States. Committed to improving the world by setting goals that will reduce our environmental impact on the planet and improve the quality of life for all of its people, the Company is well positioned to play a key role in the reduction of global carbon emissions through its planned carbon capture and sequestration, and zero-carbon ammonia strategies. Additional information about LSB can be found on its website at www.lsbindustries.com.
Forward-Looking Statements
This press release includes statements that are not historical or express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions, including the timing, amounts and terms of share repurchases, if any, as well as projections of our future financial performance, including the effects of the COVID-19 pandemic and anticipated performance based on our growth and other strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or actual achievements to differ materially from the results, level of activity, performance or anticipated achievements expressed or implied by the forward-looking statements. Significant risks and uncertainties may relate to, but are not limited to, our ability to repurchase shares in the open market or otherwise and the terms of any such repurchases, business and market disruptions related to the COVID-19 pandemic, market conditions and price volatility for our products and feedstocks, as well as global and regional economic downturns that adversely affect the demand for our end-use products, disruptions in production at our manufacturing facilities and other financial, economic, competitive, environmental, political, legal and regulatory factors. Investors should consider these and other risk factors that are discussed in the Company’s filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at http://www.sec.gov.
Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not place undue reliance upon such forward-looking statements, which speak only as of the date of this press release, as predictions of future events. Unless otherwise required by applicable laws, we undertake no obligation to update or revise any forward-looking statements, whether because of new information or future developments or otherwise.
Investor Contacts:
Fred Buonocore, CFA, Vice President of Investor Relations
(405) 510-3550
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Media Contact:
David Kimmel, Director of Communications
(405) 815-4645
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SAN ANTONIO--(BUSINESS WIRE)--NuStar Energy L.P. (NYSE: NS) announced today that members of management will participate in meetings with members of the investment community at the 2022 Citi One-on-One Midstream / Energy Infrastructure Conference on Tuesday, August 16, 2022 and Wednesday, August 17, 2022. The materials to be discussed in the meetings will be available on the partnership’s website by 12:30 p.m. Eastern Time, Tuesday, August 16, 2022.
NuStar Energy L.P., a publicly traded master limited partnership based in San Antonio, Texas, is one of the largest independent liquids terminal and pipeline operators in the nation. NuStar currently has approximately 10,000 miles of pipeline and 63 terminal and storage facilities that store and distribute crude oil, refined products, renewable fuels, ammonia and specialty liquids. The partnership’s combined system has approximately 49 million barrels of storage capacity, and NuStar has operations in the United States and Mexico. For more information, visit NuStar Energy L.P.’s website at www.nustarenergy.com and its Sustainability page at https://sustainability.nustarenergy.com/.
Investors, Pam Schmidt, Vice President, Investor Relations
Investor Relations: 210-918-INVR (4687)
or
Media, Mary Rose Brown, Executive Vice President and Chief Administrative Officer,
Corporate Communications: 210-918-2314 / 210-410-8926
LUGANO, Switzerland & WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Energy Vault Holdings, Inc. (NYSE: NRGV) (“Energy Vault” or “the Company”), a leader in sustainable, grid-scale energy storage solutions, announced financial results for the second quarter ended June 30, 2022.
Robert Piconi, Chairman, Co-Founder and CEO of Energy Vault, stated, “Strong progress was made during the quarter as evidenced by the announcements today across our gravity EVx and Energy Vault Solutions portfolio as our team continues to execute well on scaling up the business focused on the U.S, Australia and China. I am particularly pleased with the feedback from our customers in choosing Energy Vault as their energy storage partner for both short and long duration storage solutions. The rapid development of our new hardware-agnostic Energy Management Software platform underpinning approximately 1 GWh of new project awards announced today is a tremendous differentiator in the market.”
Mr. Piconi continued, “Execution on our 2022 regional priorities for first deployments remains strong with tremendous momentum being built going into the second half of the year. This positions us well to execute on our 2023 revenue plan, backed by a strong cash position to support our growth plans and no debt on the balance sheet.”
Second Quarter 2022 and Recent Business Highlights:
Large scale gravity-energy storage projects utilizing our EVx system continues multi-continent progress:
Announcing first utility-scale battery energy storage projects utilizing the new Energy Vault Solutions (EVS) software platform:
Other recent updates:
Outlook:
Conference Call Information
Energy Vault will host a conference call today at 8:00 AM ET to discuss the results, followed by a Q&A session. A live webcast of the call can be accessed https://www.energyvault.com/. To access the call, participants may dial 1-877-704-4453, international callers may use 1-201-389-0920, and request to join the Energy Vault earnings call.
A telephonic replay will be available shortly after the conclusion of the call and until, August 22, 2022. Participants may access the replay at 1-844-512-2921, international callers may use 1-412-317-6671, and enter access code 13731405. The call will also be available for replay via webcast link on the Investors portion of the Energy Vault website at https://www.energyvault.com/.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks, uncertainties, and assumptions including statements regarding our future expansion, deployments, capabilities, capital resources and future financial performance. There are a significant number of factors that could cause actual results to differ materially from the statements made in this press release, including: risks related to the rollout of Energy Vault’s business and the timing of expected business milestones, including with respect to the projects described herein, developments and changes in the general market, the continuing impact of COVID-19, political, economic, and business conditions, our limited operating history as a public company, whether MOUs or similar arrangements and other strategic investments will result in future revenues, the impact of any delays in projects for which we expect to receive revenue in 2022 or 2023, delays in construction or delivery of materials for projects, sufficiency of cash to support the company’s expansion plans, the fact that the company has no committed revenue for future periods and risks affecting our partnerships and customers. Additional risks and uncertainties that could affect our financial results are included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 filed with the Securities and Exchange Commission (the “SEC”) on May 16, 2022, which is available on our website at investors.energyvault.com and on the SEC's website at www.sec.gov. Additional information will also be set forth in other filings that we make with the SEC from time to time. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by applicable law.
ENERGY VAULT HOLDINGS, INC. |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(Unaudited) |
|||||||
(In thousands except par value) |
|||||||
June 30, |
December 31, |
||||||
|
2022 |
|
2021 |
||||
Assets |
|
|
|
||||
Current Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
299,063 |
|
|
$ |
105,125 |
|
Accounts receivable |
|
5,559 |
|
|
|
— |
|
Contract assets |
|
22,500 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
4,277 |
|
|
|
5,538 |
|
Total current assets |
|
331,399 |
|
|
|
110,663 |
|
Property and equipment, net |
|
9,319 |
|
|
|
11,868 |
|
Right-of-Use assets, net |
|
1,106 |
|
|
|
1,238 |
|
Other assets |
|
3,696 |
|
|
|
1,525 |
|
Total Assets |
$ |
345,520 |
|
|
$ |
125,294 |
|
Liabilities, Convertible Preferred Stock, and Stockholders’ Equity (Deficit) |
|
|
|
||||
Current Liabilities |
|
|
|
||||
Accounts payable |
$ |
2,164 |
|
|
$ |
1,979 |
|
Accrued expenses |
|
1,707 |
|
|
|
4,704 |
|
Deferred revenue, current portion |
|
3,033 |
|
|
|
— |
|
Long-term finance leases, current portion |
|
44 |
|
|
|
48 |
|
Long-term operating leases, current portion |
|
582 |
|
|
|
612 |
|
Total current liabilities |
|
7,530 |
|
|
|
7,343 |
|
Deferred pension obligation |
|
163 |
|
|
|
734 |
|
Asset retirement obligation |
|
968 |
|
|
|
978 |
|
Deferred revenue, long-term portion |
|
8,196 |
|
|
|
1,500 |
|
Long-term finance leases |
|
15 |
|
|
|
34 |
|
Long-term operating leases |
|
563 |
|
|
|
662 |
|
Warrant liability |
|
21,499 |
|
|
|
— |
|
Total liabilities |
|
38,934 |
|
|
|
11,251 |
|
Commitments and contingencies |
|
|
|
||||
Convertible preferred stock, $0.0001 par value; 85,739 shares authorized, 85,739 shares issued and outstanding at December 31, 2021; liquidation preference of $171,348 |
|
— |
|
|
|
182,709 |
|
Stockholders’ Equity (Deficit) |
|
|
|
||||
Preferred stock, $0.0001 par value; 5,000 shares authorized, none issued |
|
— |
|
|
|
— |
|
Common stock, $0.0001 par value; 500,000 shares authorized, 134,441 shares issued, and 134,441 outstanding at June 30, 2022; 120,568 shares authorized, 20,432 shares issued, and 20,432 outstanding at December 31, 2021 |
|
13 |
|
|
|
— |
|
Additional paid-in capital |
|
402,004 |
|
|
|
713 |
|
Accumulated deficit |
|
(95,223 |
) |
|
|
(68,966 |
) |
Accumulated other comprehensive loss |
|
(208 |
) |
|
|
(413 |
) |
Total stockholders’ equity (deficit) |
|
306,586 |
|
|
|
(68,666 |
) |
Total Liabilities, Convertible Preferred Stock, and Stockholders’ Equity (Deficit) |
$ |
345,520 |
|
|
$ |
125,294 |
|
ENERGY VAULT HOLDINGS, INC. |
|||||||||||||||
Condensed Consolidated Statements of Operations and Comprehensive Loss |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(In thousands except per share data) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Revenue |
$ |
977 |
|
|
$ |
— |
|
|
$ |
43,861 |
|
|
$ |
— |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Cost of revenue |
|
571 |
|
|
|
— |
|
|
|
571 |
|
|
|
— |
|
Sales and marketing |
|
1,949 |
|
|
|
189 |
|
|
|
4,529 |
|
|
|
274 |
|
Research and development |
|
9,763 |
|
|
|
2,202 |
|
|
|
19,424 |
|
|
|
3,223 |
|
General and administrative |
|
10,668 |
|
|
|
3,006 |
|
|
|
20,474 |
|
|
|
4,861 |
|
Inventory write-down |
|
— |
|
|
|
2,744 |
|
|
|
— |
|
|
|
2,744 |
|
Loss from operations |
|
(21,974 |
) |
|
|
(8,141 |
) |
|
|
(1,137 |
) |
|
|
(11,102 |
) |
Other income (expense) |
|
|
|
|
|
|
|
||||||||
Change in fair value of derivative |
|
— |
|
|
|
24,102 |
|
|
|
— |
|
|
|
— |
|
Interest expense |
|
— |
|
|
|
(3 |
) |
|
|
(1 |
) |
|
|
(7 |
) |
Change in fair value of warrant liability |
|
15,592 |
|
|
|
— |
|
|
|
(4,645 |
) |
|
|
— |
|
Transaction costs |
|
— |
|
|
|
— |
|
|
|
(20,586 |
) |
|
|
— |
|
Other income (expense), net |
|
249 |
|
|
|
611 |
|
|
|
285 |
|
|
|
(1,317 |
) |
Income (loss) before income taxes |
|
(6,133 |
) |
|
|
16,569 |
|
|
|
(26,084 |
) |
|
|
(12,426 |
) |
Provision for income taxes |
|
45 |
|
|
|
— |
|
|
|
173 |
|
|
|
— |
|
Net income (loss) |
$ |
(6,178 |
) |
|
$ |
16,569 |
|
|
$ |
(26,257 |
) |
|
$ |
(12,426 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share — basic |
|
|
|
|
|
|
|
||||||||
Common stock |
$ |
(0.05 |
) |
|
$ |
0.18 |
|
|
$ |
(0.24 |
) |
|
$ |
(1.10 |
) |
Convertible preferred stock |
|
— |
|
|
$ |
0.20 |
|
|
|
— |
|
|
|
— |
|
Net income (loss) per share — diluted |
|
|
|
|
|
|
|
||||||||
Common stock |
$ |
(0.05 |
) |
|
|
0.16 |
|
|
$ |
(0.24 |
) |
|
$ |
(1.10 |
) |
Convertible preferred stock |
|
— |
|
|
|
0.20 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares of outstanding — basic |
|
|
|
|
|
|
|
||||||||
Common stock |
|
133,777 |
|
|
|
11,792 |
|
|
|
107,509 |
|
|
|
11,329 |
|
Convertible preferred stock |
|
— |
|
|
|
70,880 |
|
|
|
— |
|
|
|
— |
|
Weighted average shares of outstanding — diluted |
|
|
|
|
|
|
|
||||||||
Common stock |
|
133,777 |
|
|
|
13,426 |
|
|
|
107,509 |
|
|
|
11,329 |
|
Convertible preferred stock |
|
— |
|
|
|
70,880 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) — net of tax |
|
|
|
|
|
|
|
||||||||
Actuarial gain (loss) on pension |
$ |
282 |
|
|
$ |
(332 |
) |
|
$ |
560 |
|
|
$ |
899 |
|
Foreign currency translation gain (loss) |
|
(261 |
) |
|
|
47 |
|
|
|
(355 |
) |
|
|
232 |
|
Total other comprehensive income (loss) |
|
21 |
|
|
|
(285 |
) |
|
|
205 |
|
|
|
1,131 |
|
Total comprehensive income (loss) |
$ |
(6,157 |
) |
|
$ |
16,284 |
|
|
$ |
(26,052 |
) |
|
$ |
(11,295 |
) |
ENERGY VAULT HOLDINGS, INC. |
|||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
(Unaudited) |
|||||||
(In thousands) |
|||||||
|
Six Months Ended June 30, |
||||||
|
2022 |
|
2021 |
||||
Cash Flows From Operating Activities |
|
|
|
||||
Net income (loss) |
$ |
(26,257 |
) |
|
$ |
(12,426 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
|
2,404 |
|
|
|
447 |
|
Non-cash lease expense |
|
349 |
|
|
|
299 |
|
Non-cash interest income |
|
(109 |
) |
|
|
— |
|
Stock based compensation |
|
15,863 |
|
|
|
250 |
|
Change in fair value of derivative |
|
— |
|
|
|
— |
|
Change in fair value of warrant liability |
|
4,645 |
|
|
|
— |
|
Change in pension obligation |
|
15 |
|
|
|
35 |
|
Asset retirement obligation accretion expense |
|
37 |
|
|
|
— |
|
Foreign exchange gains and losses |
|
33 |
|
|
|
— |
|
Change in operating assets |
|
(30,504 |
) |
|
|
348 |
|
Change in operating liabilities |
|
6,670 |
|
|
|
(1,084 |
) |
Net cash used in operating activities |
|
(26,854 |
) |
|
|
(8,942 |
) |
Cash Flows From Investing Activities |
|
|
|
||||
Purchase of property and equipment |
|
(333 |
) |
|
|
(73 |
) |
Purchase of convertible notes |
|
(2,000 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(2,333 |
) |
|
|
(73 |
) |
Cash Flows From Financing Activities |
|
|
|
||||
Proceeds from exercise of stock options |
|
36 |
|
|
|
6 |
|
Proceeds from reverse recapitalization and PIPE financing, net |
|
235,940 |
|
|
|
— |
|
Proceeds from exercise of warrants |
|
7,854 |
|
|
|
— |
|
Payment of transaction costs related to reverse recapitalization |
|
(20,651 |
) |
|
|
— |
|
Payment of lease obligations |
|
(19 |
) |
|
|
(238 |
) |
Proceeds from Series B-1 Preferred Stock, net of issuance costs |
|
— |
|
|
|
15,304 |
|
Net cash provided by financing activities |
|
223,160 |
|
|
|
15,072 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
(35 |
) |
|
|
1,522 |
|
Net increase in cash |
|
193,938 |
|
|
|
7,579 |
|
Cash and cash equivalents – beginning of the period |
|
105,125 |
|
|
|
10,051 |
|
Cash and cash equivalents – end of the period |
$ |
299,063 |
|
|
$ |
17,630 |
|
|
|
|
|
||||
Supplemental Disclosures of Cash Flow Information: |
|
|
|
||||
Income taxes paid |
|
1 |
|
|
|
860 |
|
Cash paid for interest |
|
1 |
|
|
|
7 |
|
Reclassification of inventory costs |
|
— |
|
|
|
10,948 |
|
Supplemental Disclosures of Non-Cash Investing and Financing Information: |
|
|
|
||||
Conversion of redeemable preferred stock into common stock in connection with the reverse recapitalization |
|
182,034 |
|
|
|
— |
|
Warrants assumed as part of reverse recapitalization |
|
19,838 |
|
|
|
— |
|
Actuarial gain on pension |
|
550 |
|
|
|
232 |
|
Assets acquired on finance lease |
|
— |
|
|
|
27 |
|
Purchases of intangible assets recorded in accrued liabilities |
|
— |
|
|
|
116 |
|
Non-GAAP Financial Measure
We use adjusted EBITDA to complement our condensed consolidated statements of operations. Management believes that this non-GAAP financial measure complements our GAAP net income (loss) and such measure is useful to investors. The presentation of this non-GAAP measure is not meant to be considered in isolation or as an alternative to net income (loss) as an indicator of our performance.
The following table provides a reconciliation from non-GAAP adjusted EBITDA to GAAP net income (loss), the most directly comparable GAAP measure (amounts in thousands):
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Net income (loss) (GAAP) |
$ |
(6,178 |
) |
|
$ |
16,569 |
|
|
$ |
(26,257 |
) |
|
$ |
(12,426 |
) |
Non-GAAP Adjustments: |
|
|
|
|
|
|
|
||||||||
Interest income, net |
|
(284 |
) |
|
|
(7 |
) |
|
|
(331 |
) |
|
|
(15 |
) |
Income tax expense |
|
45 |
|
|
|
— |
|
|
|
173 |
|
|
|
— |
|
Depreciation and amortization |
|
1,186 |
|
|
|
430 |
|
|
|
2,404 |
|
|
|
447 |
|
Stock-based compensation expense |
|
6,661 |
|
|
|
243 |
|
|
|
15,863 |
|
|
|
250 |
|
Change in fair value of warrant liability |
|
(15,592 |
) |
|
|
— |
|
|
|
4,645 |
|
|
|
— |
|
Transaction costs |
|
— |
|
|
|
— |
|
|
|
20,586 |
|
|
|
— |
|
Foreign exchange (gains) and losses |
|
(45 |
) |
|
|
(601 |
) |
|
|
(56 |
) |
|
|
1,339 |
|
Change in fair value of derivative liability |
|
— |
|
|
|
(24,102 |
) |
|
|
— |
|
|
|
— |
|
Adjusted EBITDA (non-GAAP) |
$ |
(14,207 |
) |
|
$ |
(7,468 |
) |
|
$ |
17,027 |
|
|
$ |
(10,405 |
) |
We present adjusted EBITDA, which is net income (loss) excluding adjustments that are outlined in the quantitative reconciliation provided above, as a supplemental measure of our performance and because we believe this measure is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. The items excluded from adjusted EBITDA are excluded in order to better reflect our continuing operations.
In evaluating adjusted EBITDA, one should be aware that in the future we may incur expenses similar to the adjustments noted above. Our presentation of adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these types of adjustments. Adjusted EBITDA is not a measurement of our financial performance under GAAP and should not be considered as an alternative to net loss, operating income (loss), or any other performance measures derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of our liquidity.
Our adjusted EBITDA measure has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:
Because of these limitations, adjusted EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business or as a measure of cash that will be available to use to meet our obligations. You should compensate for these limitations by relying primarily on our GAAP results and using adjusted EBITDA only supplementally.
About Energy Vault
Energy Vault develops and deploys turnkey sustainable energy storage solutions designed to transform the world’s approach to utility-scale energy storage in realizing decarbonization while maintaining grid resiliency.
Investors:
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Media:
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LYNCHBURG, Va.--(BUSINESS WIRE)--$BWXT #earnings--BWX Technologies, Inc. (NYSE: BWXT) ("BWXT", "we", "us" or the "Company") reported second quarter 2022 revenue of $554 million, a 10% increase compared with $505 million in the second quarter 2021. GAAP net income for the second quarter 2022 was $74.6 million, or $0.82 per diluted share, compared with net income of $59.3 million, or $0.62 per diluted share, in the prior-year period. Non-GAAP(1) net income for the second quarter 2022 was $75.4 million, or $0.82 per diluted share. Adjusted EBITDA(1) for the second quarter 2022 was $114.7 million, a 26% increase compared with $90.8 million in the prior-year period, primarily driven by higher revenue, the timing of certain long lead material production and positive site performance. A reconciliation of non-GAAP(1) results are detailed in Exhibit 1.
“BWXT delivered a strong second quarter despite a few operational challenges," said Rex D. Geveden, president and chief executive officer. “Second quarter results were seasonally stronger than we originally expected, driven by a combination of business performance and favorable timing. Impressive operational performance in commercial power, nuclear medicine and uranium processing offset some challenges for naval component production at certain facilities within Government Operations. Notably, the results include certain activities that were originally anticipated to occur in the third quarter, which has reduced uncertainty for the year and leads us to narrow 2022 earnings guidance.”
“I want to express my gratitude to the entire BWXT team, which continues to do a remarkable job of supporting our critical nuclear missions while building strategically significant new business lines in advanced microreactors and nuclear medicine. In June, we secured a competitively-bid contract to build the first advanced microreactor in the United States through the Strategic Capabilities Office’s Project Pele. With our key partners, we are quickly building a team of highly talented people to demonstrate that we can manufacture a reliable, safe, transportable microreactor to meet the critical power and operational needs of the Department of Defense. In addition, in early August, we completed the Tc-99m reference batches and are assembling the final data package for FDA submission," said Geveden.
(1) |
A reconciliation of non-GAAP results, including adjusted EBITDA, are detailed in Exhibit 1. Additional information can be found in the materials on the BWXT investor relations website at www.bwxt.com/investors. |
|||||||||||||||
Segment Results
Government Operations segment revenue was $437 million for the second quarter 2022, an 8% increase compared with the prior-year period, driven by the favorable timing of long-lead material volume in naval
reactors and higher revenue in uranium processing, partially offset by lower missile tube revenue due to contract adjustments. Government Operations segment operating income was $83.8 million in the second quarter 2022, a 15% increase compared with the prior-year period. Government Operations segment adjusted EBITDA(1) was $95.7 million in the second quarter 2022, a 15% increase compared with the prior-year period, primarily driven by higher revenue and robust contract performance in technical services and uranium processing which was partially offset by fewer favorable contract adjustments due to operational challenges and lower recoverable CAS pension income.
Commercial Operations segment revenue was $119 million for the second quarter 2022, a 16% increase compared with the prior-year period, driven by increased revenue from commercial nuclear power field service activity, nuclear fuel handling and BWXT Medical. Commercial Operations segment operating income was $12.9 million (GAAP) and $13.1 million (non-GAAP(1)) in the second quarter 2022, a significant respective increase compared with $5.6 million in the prior-year period. Commercial Operations segment adjusted EBITDA(1) was $18.2 million in the second quarter 2022, a 70% increase compared with the prior-year period, primarily driven by higher revenue, favorable business mix and the timing of certain expenses.
Cash and Capital Returned to Shareholders
BWXT generated $77.4 million of cash from operating activities in the second quarter 2022, compared with $59.9 million of cash generated from operating activities in the prior-year period. The Company’s cash balance, net of restricted cash, was $67.4 million at the end of the second quarter 2022.
The Company returned $20.1 million of cash to shareholders during the second quarter 2022 through dividends. Year-to-date, the Company has returned $60.8 million of cash to shareholders, including $20.0 million in share repurchases and $40.8 million in dividends. As of June 30, 2022, total remaining share repurchase authorization was $398 million.
On August 3, 2022, the BWXT Board of Directors declared a quarterly cash dividend of $0.22 per common share. The dividend will be payable on September 8, 2022, to shareholders of record on August 19, 2022.
2022 Guidance
BWXT increased guidance for revenue, adjusted EBITDA(1) and capital expenditures and narrowed guidance for non-GAAP(1) EPS.
Additional information can be found in the 2022 second quarter earnings call presentation on the BWXT investor relations website at www.bwxt.com/investors. The Company does not provide GAAP guidance because it is unable to reliably forecast most of the items that are excluded from GAAP to calculate non-GAAP results. These items could cause GAAP results to differ materially from non-GAAP results. See reconciliation of non-GAAP results in Exhibit 1 for additional information.
Conference Call to Discuss Second Quarter 2022 Results
Date: |
Monday, August 8, 2022, at 5:00 p.m. EDT |
|
Live Webcast: |
Investor Relations section of website at www.bwxt.com |
Full Earnings Release Available on BWXT Website
A full version of this earnings release is available on our Investor Relations website at http://investors.bwxt.com/2Q2022-release
BWXT may use its website (www.bwxt.com) as a channel of distribution of material Company information. Financial and other important information regarding BWXT is routinely accessible through and posted on our website. In addition, you may elect to automatically receive e-mail alerts and other information about BWXT by enrolling through the “Email Alerts” section of our website at http://investors.bwxt.com.
Forward-Looking Statements
BWXT cautions that this release contains forward-looking statements, including, without limitation, statements relating to backlog, to the extent they may be viewed as an indicator of future revenues; our plans and expectations for each of our reportable segments, including the expectations, timing and revenue of our strategic initiatives, such as medical radioisotopes and recent acquisitions; disruptions to our supply chain and/or operations, changes in government regulations and other factors, including any such impacts of, or actions in response to the COVID-19 health crisis; and our expectations and guidance for 2022 and beyond. These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, our ability to execute contracts in backlog; the lack of, or adverse changes in, federal appropriations to government programs in which we participate; the demand for and competitiveness of nuclear products and services; capital priorities of power generating utilities and other customers; the timing of technology development, regulatory approval and automation of production; the receipt and/or timing of government approvals; the impact of COVID-19 on our business and our employees, contractors, suppliers, customers and other partners and their business activities; the potential recurrence of subsequent waves or strains of COVID-19 or similar diseases; adverse changes in the industries in which we operate; and delays, changes or termination of contracts in backlog. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, see BWXT’s filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2021 and subsequent Form 10-Q filings. BWXT cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.
About BWXT
At BWX Technologies, Inc. (NYSE: BWXT), we are People Strong, Innovation Driven. Headquartered in Lynchburg, Va. BWXT is a Fortune 1000 and Defense News Top 100 manufacturing and engineering innovator that provides safe and effective nuclear solutions for global security, clean energy, environmental remediation, nuclear medicine and space exploration. With approximately 6,700 employees, BWXT has 14 major operating sites in the U.S., Canada and the U.K. In addition, BWXT joint ventures provide management and operations at more than a dozen U.S. Department of Energy and NASA facilities. Follow us on Twitter at @BWXT and learn more at www.bwxt.com.
| EXHIBIT 1 | |||||||||||||||||
BWX TECHNOLOGIES, INC. |
|||||||||||||||||
RECONCILIATION OF NON-GAAP OPERATING INCOME AND EARNINGS PER SHARE(1)(2)(3) |
|||||||||||||||||
(In millions, except per share amounts) |
|||||||||||||||||
Three Months Ended June 30, 2022 |
|||||||||||||||||
|
|
GAAP |
|
Restructuring Costs |
|
Acquisition Related Costs |
|
|
Non-GAAP |
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Income |
$ |
95.2 |
|
|
$ |
0.3 |
|
|
$ |
0.6 |
|
|
|
$ |
96.1 |
|
|
Other Income (Expense) |
|
2.9 |
|
|
|
— |
|
|
|
— |
|
|
|
|
2.9 |
|
|
Provision for Income Taxes |
|
(23.4 |
) |
|
|
(0.1 |
) |
|
|
(0.0 |
) |
|
|
|
(23.5 |
) |
|
Net Income |
|
74.7 |
|
|
|
0.2 |
|
|
|
0.6 |
|
|
|
|
75.5 |
|
|
Net Income Attributable to Noncontrolling Interest |
|
(0.1 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
(0.1 |
) |
|
Net Income Attributable to BWXT |
$ |
74.6 |
|
|
$ |
0.2 |
|
|
$ |
0.6 |
|
|
|
$ |
75.4 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Diluted Shares Outstanding |
|
91.5 |
|
|
|
|
|
|
|
|
91.5 |
|
|||||
Diluted Earnings per Common Share |
$ |
0.82 |
|
|
$ |
0.00 |
|
|
$ |
0.01 |
|
|
|
$ |
0.82 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Effective Tax Rate |
|
23.9 |
% |
|
|
|
|
|
|
|
23.7 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
||||||||
Government Operations Operating Income |
$ |
83.8 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
$ |
83.8 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial Operations Operating Income |
$ |
12.9 |
|
|
$ |
0.3 |
|
|
$ |
— |
|
|
|
$ |
13.1 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Unallocated Corporate Operating Income |
$ |
(1.4 |
) |
|
$ |
0.0 |
|
|
$ |
0.6 |
|
|
|
$ |
(0.8 |
) |
|
RECONCILIATION OF CONSOLIDATED ADJUSTED EBITDA(1)(2)(3) |
|||||||||||||||||
(In millions) |
|||||||||||||||||
Three Months Ended June 30, 2022 |
|||||||||||||||||
|
|
GAAP |
|
Restructuring Costs |
|
Acquisition Related Costs |
|
|
|
|
Non-GAAP |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net Income |
$ |
74.7 |
|
|
$ |
0.2 |
|
$ |
0.6 |
|
|
|
|
$ |
75.5 |
|
|
Provision for Income Taxes |
|
23.4 |
|
|
|
0.1 |
|
|
0.0 |
|
|
|
|
|
23.5 |
|
|
Other - net |
|
(11.1 |
) |
|
|
— |
|
|
— |
|
|
|
|
|
(11.1 |
) |
|
Interest Income |
|
(0.1 |
) |
|
|
— |
|
|
— |
|
|
|
|
|
(0.1 |
) |
|
Interest Expense |
|
8.3 |
|
|
|
— |
|
|
— |
|
|
|
|
|
8.3 |
|
|
Depreciation & Amortization |
|
18.6 |
|
|
|
— |
|
|
— |
|
|
|
|
$ |
18.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted EBITDA |
$ |
113.8 |
|
|
$ |
0.3 |
|
$ |
0.6 |
|
|
|
|
$ |
114.7 |
|
|
Three Months Ended June 30, 2021 |
|||
|
GAAP |
||
|
|
||
Net Income |
$ |
59.4 |
|
Provision for Income Taxes |
|
19.5 |
|
Other - net |
|
(15.3 |
) |
Interest Income |
|
(0.1 |
) |
Interest Expense |
|
10.2 |
|
Depreciation & Amortization |
|
17.1 |
|
|
|
||
Adjusted EBITDA |
$ |
90.8 |
|
EXHIBIT 1 (continued) RECONCILIATION OF REPORTING SEGMENT ADJUSTED EBITDA(1)(2)(3) |
||||||||||||||
(In millions) |
||||||||||||||
Three Months Ended June 30, 2022 |
||||||||||||||
|
|
Operating Income (GAAP) |
|
Non-GAAP Adjustments(4) |
|
Depreciation & Amortization |
|
|
|
Adjusted EBITDA |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Government Operations |
$ |
83.8 |
|
$ |
— |
|
$ |
11.9 |
|
|
|
$ |
95.7 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial Operations |
$ |
12.9 |
|
$ |
0.3 |
|
$ |
5.0 |
|
|
|
$ |
18.2 |
|
Three Months Ended June 30, 2021 |
|||||||||||||||
|
|
Operating Income (GAAP) |
|
Non-GAAP Adjustments(4) |
|
Depreciation & Amortization |
|
|
|
|
Adjusted EBITDA |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Government Operations |
$ |
72.9 |
|
$ |
— |
|
$ |
10.3 |
|
|
|
|
$ |
83.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial Operations |
$ |
5.6 |
|
$ |
— |
|
$ |
5.0 |
|
|
|
|
$ |
10.7 |
|
|
||||||||||||||||
(1) |
Tables may not foot due to rounding. |
|||||||||||||||
(2) |
BWXT is providing non-GAAP information regarding certain of its historical results and guidance on future earnings per share to supplement the results provided in accordance with GAAP and it should not be considered superior to, or as a substitute for, the comparable GAAP measures. BWXT believes the non-GAAP measures provide meaningful insight and transparency into the Company’s operational performance and provides these measures to investors to help facilitate comparisons of operating results with prior periods and to assist them in understanding BWXT's ongoing operations. |
|||||||||||||||
(3) |
BWXT has not included a reconciliation of provided non-GAAP guidance to the comparable GAAP measures due to the difficulty of estimating any mark-to-market adjustments for pension and post-retirement benefits, which are determined at the end of the year. |
|||||||||||||||
(4) |
For Non-GAAP adjustment details, see reconciliation of non-GAAP operating income and earnings per share. |
|||||||||||||||
|
||||||||||||||||
Investor Contact:
Mark Kratz
Vice President, Investor Relations
980-365-4300
This email address is being protected from spambots. You need JavaScript enabled to view it.
Media Contact:
Jud Simmons
Director, Media and Public Relations
434-522-6462
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TAMPA, Fla.--(BUSINESS WIRE)--Overseas Shipholding Group, Inc. (NYSE: OSG) (the “Company” or “OSG”), a leading provider of energy transportation services for crude oil and petroleum products in the U.S. Flag markets, today reported results for the second quarter 2022.
Sam Norton, President and CEO, offered the following comments on the quarterly results announced today: “Second quarter results announced this morning continued to build on the progressive quarter-to-quarter improvements in important financial measures that we have witnessed over the past year. A return to profitability is perhaps the most gratifying highlight, as we ended the quarter with all vessels in operation for the first time since the onset of COVID-19. The long shadow of COVID-induced demand destruction seems to have finally receded, and the continued emergence of renewable diesel transport is providing favorable demand growth. Time charter equivalent earnings for the quarter exceeded $100 million for the first time in two years, and adjusted EBITDA of $31.5 million represents the best quarterly performance on this metric in many years.”
Mr. Norton added, “Our patience in seeking medium-term charters at remunerative rates for our conventional tankers and ATBs has also yielded positive results. In recent weeks we have concluded employment contracts for our vessels securing nearly $250 million in forward time charter equivalent earnings over contract periods ranging from six to 36 months. As of today, we have fixed employment for 92% of available vessel days across the balance of 2022, and close to 80% of vessel available days for 2023. The welcome cash flow visibility that these fixed revenue streams will provide over the next 18 months should provide greater flexibility in managing opportunities for building on our recent achievements.”
|
||||
A, B, C |
Reconciliations of these non-GAAP financial measures are included in the financial tables attached to this press release starting on Page 8. |
|||
Second Quarter 2022 Results
Shipping revenues were $118.0 million for the second quarter of 2022, an increase of $14.0 million, or 13.4%, from the first quarter of 2022. TCE revenues increased $9.3 million, or 9.9%, from the first quarter of 2022 to $103.2 million in the second quarter of 2022. The increases were primarily a result of a 173-day decrease in layup days, as our two remaining vessels in layup returned to service in May 2022 and two full Government of Israel voyages and one partial Government of Israel voyage during the second quarter of 2022 that overlapped into the third quarter compared to one such voyage during the first quarter of 2022. The increases were partially offset by a 14-day increase in scheduled drydocking and an 11-day increase in repair days.
Second quarter 2022 operating income was $12.6 million compared to the first quarter 2022 operating income of $7.7 million.
Quarterly adjusted EBITDA increased to $31.5 million during the second quarter of 2022, a $6.1 million increase from the first quarter of 2022. The increase was driven by the increased revenues for the quarter.
In comparison to the second quarter of 2021, shipping revenues were up 33.5%. TCE revenues for the second quarter of 2022 were $103.2 million, an increase of $31.6 million, or 44.0%, compared with the second quarter of 2021. The increases primarily resulted from a 555-day decrease in layup days as we had fewer vessels in layup during the second quarter of 2022 compared to the second quarter of 2021. During the second quarter of 2022, we had two vessels in layup for 82 days, both of which came out of layup in May 2022. During the second quarter of 2021, we had seven vessels in layup. Additionally, the increases resulted from two full Government of Israel voyages and one partial Government of Israel voyage during the second quarter of 2022 that overlapped into the third quarter, compared to one such voyage during the same period in 2021 and an increase in average daily rates earned by our fleet. The increases were partially offset by (a) a 17-day increase in scheduled drydocking, (b) a 14-day increase in repair days, (c) one less MR tanker in our fleet, Overseas Gulf Coast, which was sold in mid-June 2021 and (d) a decrease in Delaware lightering volumes and a decrease in the price per barrel lightered during the second quarter of 2022 compared to the second quarter of 2021.
Operating income for the second quarter of 2022 was $12.6 million compared to an operating loss of $5.8 million for the second quarter of 2021. Net income for the second quarter of 2022 was $3.7 million, or $0.04 per diluted share, compared with a net loss of $10.7 million, or $(0.12) per diluted share, for the second quarter of 2021.
Adjusted EBITDA was $31.5 million for the 2022 second quarter, an increase of $21.3 million compared with the second quarter of 2021, driven primarily by the increase in TCE revenues.
Conference Call
The Company will host a conference call to discuss its second quarter 2022 results at 9:30 a.m. Eastern Time (“ET”) on Monday, August 8, 2022.
To access the call, participants should dial (844) 200-6205 for domestic callers and (929) 526-1599 for international callers and enter Access Code 445428. Please dial in ten minutes prior to the start of the call.
A live webcast of the conference call will be available from the Investor Relations section of the Company’s website at www.osg.com.
An audio replay of the conference call will be available for one week starting at 11:30 a.m. ET on Monday, August 8, 2022, by dialing (866) 813-9403 for domestic callers and (929) 458-6194 for international callers and entering Access Code 762707.
About Overseas Shipholding Group, Inc.
Overseas Shipholding Group, Inc. (NYSE:OSG) is a publicly traded company providing energy transportation services for crude oil and petroleum products in the U.S. Flag markets. OSG is a major operator of tankers and ATBs in the Jones Act industry. OSG’s 23 vessel U.S. Flag fleet consists of three crude oil tankers doing business in Alaska, two conventional ATBs, two lightering ATBs, three shuttle tankers, ten MR tankers, and two non-Jones Act MR tankers that participate in the U.S. Maritime Security Program, and one tanker in cold layup. In addition, OSG also owns and operates one Marshall Islands flagged MR tanker which trades internationally.
OSG is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world’s most customer-focused marine transportation companies and is headquartered in Tampa, FL. More information is available at www.osg.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, the Company may make or approve certain forward-looking statements in future filings with the Securities and Exchange Commission (SEC), in press releases, or in oral or written presentations by representatives of the Company. All statements other than statements of historical fact should be considered forward-looking statements. These matters or statements may relate to our prospects, supply and demand for vessels in the markets in which we operate and the impact on market rates and vessel earnings, the continued stability of our niche businesses, the impact of our time charter contracts on our future financial performance, and external events such as geopolitical conflicts such as the Russian/Ukraine conflict. Forward-looking statements are based on our current plans, estimates and projections, and are subject to change based on a number of factors. COVID-19 has had, and will continue to have, a profound impact on our workforce and many other aspects of our business and industry. Investors should carefully consider the risk factors outlined in more detail in our filings with the SEC. We do not assume any obligation to update or revise any forward-looking statements except as may be required by applicable law. Forward-looking statements and written and oral forward-looking statements attributable to us or our representatives after the date of this press release are qualified in their entirety by the cautionary statements contained in this paragraph and in other reports previously or hereafter filed by us with the SEC.
Consolidated Statements of Operations ($ in thousands, except per share amounts) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
||||
Shipping Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Time and bareboat charter revenues |
|
$ |
82,969 |
|
|
$ |
62,806 |
|
|
$ |
140,204 |
|
|
$ |
126,594 |
|
Voyage charter revenues |
|
|
35,016 |
|
|
|
25,553 |
|
|
|
81,779 |
|
|
|
43,039 |
|
|
|
|
117,985 |
|
|
|
88,359 |
|
|
|
221,983 |
|
|
|
169,633 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Voyage expenses |
|
|
14,742 |
|
|
|
16,668 |
|
|
|
24,816 |
|
|
|
32,428 |
|
Vessel expenses |
|
|
44,153 |
|
|
|
34,002 |
|
|
|
84,950 |
|
|
|
65,809 |
|
Charter hire expenses |
|
|
22,350 |
|
|
|
22,595 |
|
|
|
44,346 |
|
|
|
44,913 |
|
Depreciation and amortization |
|
|
16,663 |
|
|
|
15,068 |
|
|
|
33,156 |
|
|
|
30,387 |
|
General and administrative |
|
|
7,435 |
|
|
|
6,004 |
|
|
|
14,373 |
|
|
|
12,370 |
|
(Gain)/loss on disposal of vessels and other property, including impairments, net |
|
|
— |
|
|
|
(196 |
) |
|
|
— |
|
|
|
5,298 |
|
Total operating expenses |
|
|
105,343 |
|
|
|
94,141 |
|
|
|
201,641 |
|
|
|
191,205 |
|
Operating income/(loss) |
|
|
12,642 |
|
|
|
(5,782 |
) |
|
|
20,342 |
|
|
|
(21,572 |
) |
Other (expense)/income, net |
|
|
(16 |
) |
|
|
(111 |
) |
|
|
81 |
|
|
|
11 |
|
Income/(loss) before interest expense and income taxes |
|
|
12,626 |
|
|
|
(5,893 |
) |
|
|
20,423 |
|
|
|
(21,561 |
) |
Interest expense |
|
|
(8,275 |
) |
|
|
(7,317 |
) |
|
|
(16,640 |
) |
|
|
(13,687 |
) |
Income/(loss) before income taxes |
|
|
4,351 |
|
|
|
(13,210 |
) |
|
|
3,783 |
|
|
|
(35,248 |
) |
Income tax (expense)/benefit |
|
|
(611 |
) |
|
|
2,511 |
|
|
|
(552 |
) |
|
|
8,681 |
|
Net income/(loss) |
|
$ |
3,740 |
|
|
$ |
(10,699 |
) |
|
$ |
3,231 |
|
|
$ |
(26,567 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted Average Number of Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic - Class A |
|
|
91,254,864 |
|
|
|
90,612,019 |
|
|
|
90,984,407 |
|
|
|
90,363,243 |
|
Diluted - Class A |
|
|
92,607,727 |
|
|
|
90,612,019 |
|
|
|
92,345,481 |
|
|
|
90,363,243 |
|
Per Share Amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted net income/(loss) - Class A |
|
$ |
0.04 |
|
|
$ |
(0.12 |
) |
|
$ |
0.04 |
|
|
$ |
(0.29 |
) |
Consolidated Balance Sheets ($ in thousands) |
||||||||
|
|
June 30, 2022 |
|
|
December 31, 2021 |
|
||
|
|
(unaudited) |
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
||
Current Assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
84,441 |
|
|
$ |
83,253 |
|
Voyage receivables, including unbilled of $7,067 and $3,777, net of reserve for doubtful accounts |
|
|
17,152 |
|
|
|
14,586 |
|
Income tax receivable |
|
|
1,883 |
|
|
|
1,882 |
|
Other receivables |
|
|
11,210 |
|
|
|
5,816 |
|
Inventories, prepaid expenses and other current assets |
|
|
6,932 |
|
|
|
3,438 |
|
Total Current Assets |
|
|
121,618 |
|
|
|
108,975 |
|
Vessels and other property, less accumulated depreciation |
|
|
742,834 |
|
|
|
761,777 |
|
Deferred drydock expenditures, net |
|
|
41,940 |
|
|
|
43,342 |
|
Total Vessels, Other Property and Deferred Drydock |
|
|
784,774 |
|
|
|
805,119 |
|
Intangible assets, less accumulated amortization |
|
|
20,317 |
|
|
|
22,617 |
|
Operating lease right-of-use assets, net |
|
|
112,198 |
|
|
|
152,027 |
|
Other assets |
|
|
25,002 |
|
|
|
26,991 |
|
Total Assets |
|
$ |
1,063,909 |
|
|
$ |
1,115,729 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
Current Liabilities: |
|
|
|
|
|
|
||
Accounts payable, accrued expenses and other current liabilities |
|
$ |
47,850 |
|
|
$ |
49,901 |
|
Current portion of operating lease liabilities |
|
|
87,054 |
|
|
|
100,010 |
|
Current portion of finance lease liabilities |
|
|
4,001 |
|
|
|
4,000 |
|
Current installments of long-term debt |
|
|
22,966 |
|
|
|
22,225 |
|
Total Current Liabilities |
|
|
161,871 |
|
|
|
176,136 |
|
Reserve for uncertain tax positions |
|
|
182 |
|
|
|
179 |
|
Noncurrent operating lease liabilities |
|
|
45,003 |
|
|
|
73,150 |
|
Noncurrent finance lease liabilities |
|
|
17,748 |
|
|
|
18,998 |
|
Long-term debt |
|
|
411,137 |
|
|
|
422,515 |
|
Deferred income taxes, net |
|
|
64,260 |
|
|
|
63,744 |
|
Other liabilities |
|
|
20,513 |
|
|
|
22,393 |
|
Total Liabilities |
|
|
720,714 |
|
|
|
777,115 |
|
Equity: |
|
|
|
|
|
|
||
Common stock - Class A ($0.01 par value; 166,666,666 shares authorized; 87,974,424 and 87,170,463 shares issued and outstanding) |
|
|
880 |
|
|
|
872 |
|
Paid-in additional capital |
|
|
596,399 |
|
|
|
594,386 |
|
Accumulated deficit |
|
|
(256,356 |
) |
|
|
(259,587 |
) |
Treasury stock, 145,741 shares, at cost |
|
|
(310 |
) |
|
|
— |
|
|
|
|
340,613 |
|
|
|
335,671 |
|
Accumulated other comprehensive loss |
|
|
2,582 |
|
|
|
2,943 |
|
Total Equity |
|
|
343,195 |
|
|
|
338,614 |
|
Total Liabilities and Equity |
|
$ |
1,063,909 |
|
|
$ |
1,115,729 |
|
Consolidated Statements of Cash Flows ($ in thousands) |
||||||||
|
|
Six Months Ended
|
|
|||||
|
|
2022 |
|
|
2021 |
|
||
|
|
(unaudited) |
|
|
(unaudited) |
|
||
Cash Flows from Operating Activities: |
|
|
|
|
|
|
||
Net income/(loss) |
|
$ |
3,231 |
|
|
$ |
(26,567 |
) |
Items included in net income not affecting cash flows: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
33,156 |
|
|
|
30,387 |
|
Loss on disposal of vessels and other property, including impairments, net |
|
|
— |
|
|
|
5,298 |
|
Amortization of debt discount and other deferred financing costs |
|
|
554 |
|
|
|
1,252 |
|
Compensation relating to restricted stock awards and stock option grants |
|
|
2,391 |
|
|
|
1,270 |
|
Deferred income tax expense/(benefit) |
|
|
519 |
|
|
|
(8,679 |
) |
Interest on finance lease liabilities |
|
|
826 |
|
|
|
914 |
|
Non-cash operating lease expense |
|
|
44,874 |
|
|
|
45,672 |
|
Payments for drydocking |
|
|
(7,386 |
) |
|
|
(14,222 |
) |
Operating lease liabilities |
|
|
(45,935 |
) |
|
|
(45,957 |
) |
Changes in operating assets and liabilities, net |
|
|
(15,061 |
) |
|
|
63 |
|
Net cash provided by/(used in) operating activities |
|
|
17,169 |
|
|
|
(10,569 |
) |
Cash Flows from Investing Activities: |
|
|
|
|
|
|
||
Expenditures for vessels and vessel improvements |
|
|
(2,046 |
) |
|
|
(5,101 |
) |
Proceeds from disposals of vessels and other property |
|
|
— |
|
|
|
32,128 |
|
Net cash (used in)/provided by investing activities |
|
|
(2,046 |
) |
|
|
27,027 |
|
Cash Flows from Financing Activities: |
|
|
|
|
|
|
||
Payments on debt |
|
|
(10,930 |
) |
|
|
(19,251 |
) |
Tax withholding on share-based awards |
|
|
(371 |
) |
|
|
(402 |
) |
Payments on principal portion of finance lease liabilities |
|
|
(2,063 |
) |
|
|
(2,063 |
) |
Deferred financing costs paid for debt amendments |
|
|
(261 |
) |
|
|
(2,429 |
) |
Extinguishment of debt |
|
|
— |
|
|
|
(301 |
) |
Purchases of treasury stock under the stock repurchase program |
|
|
(310 |
) |
|
|
— |
|
Net cash used in financing activities |
|
|
(13,935 |
) |
|
|
(24,446 |
) |
Net increase/(decrease) in cash, cash equivalents and restricted cash |
|
|
1,188 |
|
|
|
(7,988 |
) |
Cash, cash equivalents and restricted cash at beginning of year |
|
|
83,253 |
|
|
|
69,819 |
|
Cash, cash equivalents and restricted cash at end of year |
|
$ |
84,441 |
|
|
$ |
61,831 |
|
Spot and Fixed TCE Rates Achieved and Revenue Days
The following tables provide a breakdown of TCE rates achieved for spot and fixed charters and the related revenue days for the three and six months ended June 30, 2022 and the comparable period of 2021. Revenue days in the quarter ended June 30, 2022 totaled 1,903 compared with 1,484 in the prior year quarter.
|
|
2022 |
|
|
2021 |
|
||||||||||
Three Months Ended June 30, |
|
Spot
|
|
|
Fixed
|
|
|
Spot
|
|
|
Fixed
|
|
||||
Jones Act Handysize Product Carriers: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average rate |
|
$ |
48,256 |
|
|
$ |
60,611 |
|
|
$ |
32,613 |
|
|
$ |
65,822 |
|
Revenue days |
|
|
119 |
|
|
|
935 |
|
|
|
182 |
|
|
|
455 |
|
Non-Jones Act Handysize Product Carriers: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average rate |
|
$ |
42,264 |
|
|
$ |
32,286 |
|
|
$ |
33,437 |
|
|
$ |
12,417 |
|
Revenue days |
|
|
182 |
|
|
|
91 |
|
|
|
187 |
|
|
|
159 |
|
ATBs: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average rate |
|
$ |
— |
|
|
$ |
34,939 |
|
|
$ |
— |
|
|
$ |
32,087 |
|
Revenue days |
|
|
— |
|
|
|
181 |
|
|
|
— |
|
|
|
182 |
|
Lightering: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average rate |
|
$ |
58,974 |
|
|
$ |
— |
|
|
$ |
87,948 |
|
|
$ |
— |
|
Revenue days |
|
|
129 |
|
|
|
— |
|
|
|
91 |
|
|
|
— |
|
Alaska (a): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average rate |
|
$ |
— |
|
|
$ |
60,010 |
|
|
$ |
— |
|
|
$ |
58,753 |
|
Revenue days |
|
|
— |
|
|
|
266 |
|
|
|
— |
|
|
|
228 |
|
|
|
2022 |
|
|
2021 |
|
||||||||||
Six Months Ended June 30, |
|
Spot
|
|
|
Fixed
|
|
|
Spot
|
|
|
Fixed
|
|
||||
Jones Act Handysize Product Carriers: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average rate |
|
$ |
55,325 |
|
|
$ |
59,442 |
|
|
$ |
28,964 |
|
|
$ |
65,486 |
|
Revenue days |
|
|
529 |
|
|
|
1,487 |
|
|
|
330 |
|
|
|
932 |
|
Non-Jones Act Handysize Product Carriers: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average rate |
|
$ |
43,164 |
|
|
$ |
24,909 |
|
|
$ |
24,383 |
|
|
$ |
9,586 |
|
Revenue days |
|
|
362 |
|
|
|
181 |
|
|
|
367 |
|
|
|
336 |
|
ATBs: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average rate |
|
$ |
— |
|
|
$ |
34,897 |
|
|
$ |
— |
|
|
$ |
32,213 |
|
Revenue days |
|
|
— |
|
|
|
359 |
|
|
|
— |
|
|
|
362 |
|
Lightering: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average rate |
|
$ |
62,613 |
|
|
$ |
— |
|
|
$ |
81,339 |
|
|
$ |
— |
|
Revenue days |
|
|
228 |
|
|
|
— |
|
|
|
181 |
|
|
|
— |
|
Alaska (a): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average rate |
|
$ |
— |
|
|
$ |
59,500 |
|
|
$ |
— |
|
|
$ |
58,748 |
|
Revenue days |
|
|
— |
|
|
|
535 |
|
|
|
— |
|
|
|
466 |
|
(a) Excludes one Alaska vessel currently in layup. |
||||||||||||||||
Fleet Information
As of June 30, 2022, OSG’s operating fleet consisted of 24 vessels, 12 of which were owned, with the remaining vessels chartered-in. Vessels chartered-in are on Bareboat Charters.
|
|
Vessels Owned |
|
|
Vessels
|
|
|
Total at June 30, 2022 |
|
|||||||
Vessel Type |
|
Number |
|
|
Number |
|
|
Total Vessels |
|
|
Total dwt (3) |
|
||||
Handysize Product Carriers (1) |
|
|
5 |
|
|
|
11 |
|
|
|
16 |
|
|
|
760,493 |
|
Crude Oil Tankers (2) |
|
|
3 |
|
|
|
1 |
|
|
|
4 |
|
|
|
772,194 |
|
Refined Product ATBs |
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
|
|
54,182 |
|
Lightering ATBs |
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
|
|
91,112 |
|
Total Operating Fleet |
|
|
12 |
|
|
|
12 |
|
|
|
24 |
|
|
|
1,677,981 |
|
(1) |
Includes two owned shuttle tankers, 11 chartered-in tankers, and two non-Jones Act MR tankers that participate in the U.S. Maritime Security Program, all of which are U.S. flagged, as well as one owned Marshall Island flagged non-Jones Act MR tanker trading in international markets. |
(2) |
Includes three crude oil tankers doing business in Alaska and one crude oil tanker bareboat chartered-in and in layup. |
(3) |
Total dwt is defined as aggregate deadweight tons for all vessels of that type. |
Reconciliation to Non-GAAP Financial Information
The Company believes that, in addition to conventional measures prepared in accordance with GAAP, the following non-GAAP measures provide investors with additional information that will better enable them to evaluate the Company’s performance. Accordingly, these non-GAAP measures are intended to provide supplemental information, and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP.
(A) Time Charter Equivalent (TCE) Revenues
Consistent with general practice in the shipping industry, the Company uses TCE revenues, which represents shipping revenues less voyage expenses, as a measure to compare revenue generated from a voyage charter to revenue generated from a time charter. TCE revenues, a non-GAAP measure, provides additional meaningful information in conjunction with shipping revenues, the most directly comparable GAAP measure, because it assists Company management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. Reconciliation of TCE revenues of the segments to shipping revenues as reported in the consolidated statements of operations follows:
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
($ in thousands) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Time charter equivalent revenues |
|
$ |
103,243 |
|
|
$ |
71,691 |
|
|
$ |
197,167 |
|
|
$ |
137,205 |
|
Add: Voyage expenses |
|
|
14,742 |
|
|
|
16,668 |
|
|
|
24,816 |
|
|
|
32,428 |
|
Shipping revenues |
|
$ |
117,985 |
|
|
$ |
88,359 |
|
|
$ |
221,983 |
|
|
$ |
169,633 |
|
Vessel Operating Contribution
Vessel operating contribution, a non-GAAP measure, is TCE revenues minus vessel expenses and charter hire expenses.
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
($ in thousands) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Niche market activities |
|
$ |
17,404 |
|
|
$ |
17,653 |
|
|
$ |
35,526 |
|
|
$ |
30,795 |
|
Jones Act handysize tankers |
|
|
7,702 |
|
|
|
(11,490 |
) |
|
|
9,160 |
|
|
|
(23,746 |
) |
ATBs |
|
|
4,014 |
|
|
|
3,755 |
|
|
|
8,083 |
|
|
|
7,337 |
|
Alaska crude oil tankers |
|
|
7,620 |
|
|
|
5,176 |
|
|
|
15,102 |
|
|
|
12,097 |
|
Vessel operating contribution |
|
|
36,740 |
|
|
|
15,094 |
|
|
|
67,871 |
|
|
|
26,483 |
|
Depreciation and amortization |
|
|
16,663 |
|
|
|
15,068 |
|
|
|
33,156 |
|
|
|
30,387 |
|
General and administrative |
|
|
7,435 |
|
|
|
6,004 |
|
|
|
14,373 |
|
|
|
12,370 |
|
(Gain)/loss on disposal of vessels and other property, including impairments, net |
|
|
— |
|
|
|
(196 |
) |
|
|
— |
|
|
|
5,298 |
|
Operating income/(loss) |
|
$ |
12,642 |
|
|
$ |
(5,782 |
) |
|
$ |
20,342 |
|
|
$ |
(21,572 |
) |
(B) EBITDA and Adjusted EBITDA
EBITDA represents net income/(loss) before interest expense, income taxes and depreciation and amortization expense. Adjusted EBITDA consists of EBITDA adjusted to exclude amortization classified in charter hire expenses, interest expense classified in charter hire expenses, loss/(gain) on disposal of vessels and other property, including impairments, net, non-cash stock based compensation expense and loss on repurchases and extinguishment of debt and the impact of other items that we do not consider indicative of our ongoing operating performance. EBITDA and Adjusted EBITDA do not represent, and should not be a substitute for, net income/(loss) or cash flows from operations as determined in accordance with GAAP. Some of the limitations are: (i) EBITDA and Adjusted EBITDA do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments; (ii) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs; and (iii) EBITDA and Adjusted EBITDA do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our debt. While EBITDA and Adjusted EBITDA are frequently used as a measure of operating results and performance, neither of them is necessarily comparable to other similarly titled measures used by other companies due to differences in methods of calculation. The following table reconciles net income/(loss) as reflected in the consolidated statements of operations, to EBITDA and Adjusted EBITDA.
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
($ in thousands) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Net income/(loss) |
|
$ |
3,740 |
|
|
$ |
(10,699 |
) |
|
$ |
3,231 |
|
|
$ |
(26,567 |
) |
Income tax expense/(benefit) |
|
|
611 |
|
|
|
(2,511 |
) |
|
|
552 |
|
|
|
(8,681 |
) |
Interest expense |
|
|
8,275 |
|
|
|
7,317 |
|
|
|
16,640 |
|
|
|
13,687 |
|
Depreciation and amortization |
|
|
16,663 |
|
|
|
15,068 |
|
|
|
33,156 |
|
|
|
30,387 |
|
EBITDA |
|
|
29,289 |
|
|
|
9,175 |
|
|
|
53,579 |
|
|
|
8,826 |
|
Amortization classified in charter hire expenses |
|
|
143 |
|
|
|
143 |
|
|
|
285 |
|
|
|
285 |
|
Interest expense classified in charter hire expenses |
|
|
312 |
|
|
|
341 |
|
|
|
627 |
|
|
|
686 |
|
Non-cash stock based compensation expense |
|
|
1,735 |
|
|
|
694 |
|
|
|
2,391 |
|
|
|
1,270 |
|
(Gain)/loss on disposal of vessels and other property, including impairments, net |
|
|
— |
|
|
|
(196 |
) |
|
|
— |
|
|
|
5,298 |
|
Adjusted EBITDA |
|
$ |
31,479 |
|
|
$ |
10,157 |
|
|
$ |
56,882 |
|
|
$ |
16,365 |
|
(C) Total Cash
($ in thousands) |
|
June 30,
|
|
|
December 31,
|
|
||
Cash and cash equivalents |
|
$ |
84,374 |
|
|
$ |
83,172 |
|
Restricted cash |
|
|
67 |
|
|
|
81 |
|
Total cash |
|
$ |
84,441 |
|
|
$ |
83,253 |
|
Investor Relations & Media Contact:
Susan Allan, Overseas Shipholding Group, Inc.
(813) 209-0620
This email address is being protected from spambots. You need JavaScript enabled to view it.
Initiative to demonstrate technology and produce jet fuel reserves for commercially viable carbon neutral flight
PASADENA, Calif. & ITHACA, N.Y.--(BUSINESS WIRE)--$HLGN--Heliogen, Inc. (NYSE: HLGN), a leading provider of AI-enabled concentrated solar energy technology, today announced it has entered into a letter of intent (“LOI”) with Dimensional Energy, a sustainable fuels company, to jointly produce sustainable aviation fuel (“SAF”) at Heliogen’s concentrated solar thermal demonstration facility in Lancaster, Calif. This first-of-its-kind collaboration aims to create a reserve of jet fuel created from sunlight and air to enable the rapid decarbonization of the aviation industry.
The companies will work to deploy Heliogen’s proprietary, artificial intelligence (AI)-powered HelioHeat™ technology to convert sunlight directly into thermal energy in the form of high temperature steam and air that will be used to produce green hydrogen for Dimensional Energy’s Reactor platform. The hydrogen will be produced leveraging the previously announced successful demonstration of Heliogen’s concentrated solar technology. As part of the collaboration between Heliogen and Dimensional Energy, the LOI includes a goal of building a fully integrated ~1 barrel per day drop-in ready SAF demonstration. The parties expect the demonstration project to be a first step to develop a pipeline for approximately 3 million barrels of fuel over the next ten years.
As previously announced, Dimensional Energy has signed a commercial agreement to supply United Airlines with 300 million gallons of SAF over 20 years.
The airline industry is responsible for nearly 3% of global carbon dioxide emissions, while the United Nations expects airplane emissions of carbon dioxide to triple by 2050. SAF is a direct replacement for conventional jet fuel, and can enable the rapid decarbonization of the global aviation sector when produced from carbon-free energy sources like the sun instead of petroleum. The SAF market is projected to grow from $219 million in 2021 to $15.7 billion by 2030, expanding at a 60.8% CAGR, according to ResearchandMarkets.com.
“At Heliogen, our mission is to decarbonize industry by delivering advanced renewable energy systems that are more affordable than fossil fuels and we are thrilled to collaborate with Dimensional Energy to advance the decarbonization of the aviation industry,” said Bill Gross, Founder and Chief Executive Officer, Heliogen. “Dimensional’s flexible thermal utilization platform is the most scalable and cost effective solution, and when combined with Heliogen’s transformative concentrated solar technology, this partnership brings us one crucial step closer to a future where we can fly planes on fuel created by sunlight and air – not fossil fuels.”
“This collaboration with Heliogen represents a key development in our vision of a world free from fossil fuel dependency,” said Jason Salfi, Co-founder and Chief Executive Officer, Dimensional Energy. “Leveraging Heliogen’s breakthrough technology to use sunlight to produce SAF will help demonstrate the potential for a truly carbon-free, more affordable, and drop-in replacement for conventional jet fuel.”
About Heliogen
Heliogen is a renewable energy technology company focused on decarbonizing industry and empowering a sustainable future. The company’s concentrated solar energy and thermal storage systems aim to deliver carbon-free heat, power, or green hydrogen at scale to support round-the-clock industrial operations. Powered by AI, computer vision and robotics, Heliogen is focused on providing robust clean energy solutions that accelerate the transition to renewable energy, without compromising reliability, availability, or cost. For more information about Heliogen, please visit heliogen.com
About Dimensional
Dimensional Energy envisions a world free from fossil fuel dependency. We use carbon dioxide emissions as a replacement for fossil carbon to make the fuels and products people use every day. Our team of subject matter experts come from all over the world with a shared purpose of making the sustainable materials necessary for a truly circular economy and bringing about climate justice for all. Our technology can produce energy locally, at a scale that can satisfy global demand without extracting resources or fomenting conflict. Learn more at www.dimensionalenergy.com.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not historical in nature, including the words “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast” and other similar expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the production of, and current and projected market for, sustainable aviation fuel. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) our financial and business performance, including risk of uncertainty in our financial projections and business metrics and any underlying assumptions thereunder; (ii) our ability to execute our business model, including market acceptance of our planned products and services and achieving sufficient production volumes at acceptable quality levels and prices; (iii) our ability to access sources of capital to finance operations, growth and future capital requirements; (iv) our ability to maintain and enhance our products and brand, and to attract and retain customers; (v) our ability to scale in a cost effective manner; (vi) changes in applicable laws or regulations; (vii) the ongoing impacts of the COVID-19 pandemic and the potential impacts of Russia’s invasion of Ukraine on our business; (viii) developments and projections relating to our competitors and industry; (ix) our ability to access sources of capital to finance operations, growth and future capital requirements; and (x) our ability to protect our intellectual property. You should carefully consider the foregoing factors and the other risks and uncertainties disclosed in the “Risk Factors” section in Part I, Item 1A in our Annual Report on Form 10-K/A for the annual period ended December 31, 2021 and other documents filed by Heliogen from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Heliogen assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Heliogen Media Contact:
Cory Ziskind
ICR, Inc.
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Heliogen Investor Contact:
Louis Baltimore
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Dimensional Media Contact:
Dan Cogan
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Expands Existing Collaborations Between Margaritaville and CTM Brands
PALM BEACH, Fla. & SALEM, N.H.--(BUSINESS WIRE)--Margaritaville at Sea, the floating island vacation, and CTM Group Inc. (“CTM”), a leading global provider of managed entertainment and souvenir solutions for tourist destinations and other high-traffic venues, today announced the launch of a new, one-of-a-kind arcade and gaming experience for cruise guests onboard the Margaritaville at Sea Paradise, starting on sailings this August.
With 10 passenger decks and 658 cabins in various stateroom categories, the Margaritaville at Sea Paradise offers the fun, escapism, and state of mind synonymous with the Margaritaville lifestyle. The new CTM-installed gaming and entertainment experience will feature the latest games, simulators, and other attractions, all uniquely catering to cruise guests. Installations will be spread throughout the ship, including outside the casino and a signature arcade room on the top deck, offering another attraction for families traveling with children. Planned prizes will include Margaritaville-branded merchandise and specialty items appealing to guests of all ages.
The Margaritaville at Sea Paradise installation will continue to expand the partnership between the two brands, building on existing collaborations such as the CTM gaming and arcade equipment at Margaritaville Lake Resort in Lake Conroe, Texas.
“Bringing the CTM arcade experience to Margaritaville at Sea Paradise will provide guests with another new and exciting amenity to enjoy onboard,” said Terry Smith, Director of Onboard Revenue at Margaritaville at Sea. “We’ve already seen firsthand how CTM shares our passion and commitment to elevating the guest experience. We look forward to future opportunities to work together.”
“This partnership with Margaritaville at Sea is an important first venture to introduce our leading games and installations to the cruise ship traveler,” said David Bishop, Chief Executive Officer of CTM. “We are excited to collaborate with such a well-known brand and strong team to delight guests through this unique experience and lay the foundation for our shared growth with Margaritaville at Sea.”
Over the coming months, Margaritaville at Sea and CTM expect to introduce a cashless, proprietary payment system for cruise guests, which will enable payment for arcade experiences by room key.
For more information on Margaritaville at Sea or to book a cruise, visit www.MargaritavilleatSea.com or call 800-995-3143. Follow Margaritaville at Sea on Facebook and Instagram @MargaritavilleatSea.
About Margaritaville at Sea
Margaritaville at Sea is a floating island vacation at sea that brings together the brand’s iconic hospitality and experiences with the ability to escape and see the world. The inaugural ship, Margaritaville at Sea Paradise, features 658 cabins with nautical details and colors influenced by the sea, sand, and sky. Amenities include several dining venues, pools, entertainment programming, retail stores, a St. Somewhere Spa, Fins Up! Fitness Center, and more. In addition to Margaritaville at Sea, Margaritaville features over 25 hotels and resorts, two gaming properties, RV resorts, and over 60 food and beverage venues – as well as real estate communities, vacation clubs, and consumer lifestyle products.
About CTM Group Inc.
Formed in 2002, CTM Group Inc. is a leading global provider of managed entertainment and souvenir solutions for tourist destination and other high-traffic venues, including theme and amusement parks, zoos, aquariums, museums and retail locations worldwide. CTM has an international network of blue-chip venue partners and more than 25,000 pieces of installed equipment in over 2,000 popular venues. CTM is the provider of choice for entertainment and souvenir concepts at iconic tourist and retail destinations. For more information, please visit www.ctmgroupinc.com.
CTM Group is a portfolio company of the private equity arm of Z Capital Group ("ZCG"), a leading privately held merchant bank comprised of private markets asset management, business consulting services, technology development and solutions. ZCG has a global team of over 300 professionals. (www.zcg.com).
MEDIA:
Margaritaville:
Hemsworth Communications for Margaritaville at Sea
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Finn Partners for Margaritaville
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CTM Group:
Tim Ragones / Kate Thompson
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449
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